The bipartisan Motor Vehicle Modernization Act of 2026 could ban Mercedes-Benz from U.S. sales and manufacturing. This House legislation targets automakers with significant ownership ties to foreign adversaries like China.
Mercedes-Benz faces scrutiny due to its specific shareholder structure. State-owned BAIC Group and Geely founder Li Shufu collectively own nearly 20% of Mercedes-Benz Group AG.
This combined stake likely exceeds the ownership thresholds defined in the proposed bill. The legislation could trigger a total market ban despite the company's existing U.S. manufacturing footprint.