Mercedes lobbies to raise US China-stake ban from 15% to 25% | its own 20% cap-position at stake
TL;DR
Mercedes-Benz is lobbying US Congress to soften a Senate bill introduced in April that would ban automakers with over 15% Chinese ownership from selling connected cars in the US. Nearly 20% of Mercedes is Chinese-owned; the company wants the cap raised to 25%. BAIC holds ~10%, Geely founder Li Shufu another ~10%.
Mercedes-Benz Group is lobbying to soften a US Senate bill — Bloomberg cited people familiar on July 20. The bill was introduced in April by senators from both parties and would ban automakers whose Chinese entities hold more than 15% from selling connected cars in the US. That threshold puts Mercedes squarely in the ban zone — nearly 20% of the company is held by Chinese entities.
Mercedes's ask is blunt: raise the 15% cap to 25%, and push several other tweaks. Roughly 10% is held by Chinese state-owned automaker BAIC Group, and Geely Holding founder Li Shufu also holds nearly 10%. Two 10% stakes on top of each other and it slams into the ceiling.
The bill's stated purpose is preventing Chinese entities from using ownership to reach US drivers' driving data, sensor data, and OTA update channels. Mercedes's situation is a direct downstream of 2018-era "Chinese capital into European luxury brands" — BAIC and Geely were seen as "strategic investment partners" then, but in 2026 they became landmines for US market access.
Mercedes did not respond to requests for comment. Polestar last month simply gave up appealing and pulled out of the US; Volvo, also Geely-linked, kept its authorization. Same rules, three outcomes — Mercedes wants to fight for the next exemption slot.
15% is the political line, 20% is the shareholder fact. Mercedes lobbying Congress to move the political line so it clears the shareholder fact — the first time a German luxury automaker has publicly courted Washington over its "China stake."
via Bloomberg
Mercedes's ask is blunt: raise the 15% cap to 25%, and push several other tweaks. Roughly 10% is held by Chinese state-owned automaker BAIC Group, and Geely Holding founder Li Shufu also holds nearly 10%. Two 10% stakes on top of each other and it slams into the ceiling.
The bill's stated purpose is preventing Chinese entities from using ownership to reach US drivers' driving data, sensor data, and OTA update channels. Mercedes's situation is a direct downstream of 2018-era "Chinese capital into European luxury brands" — BAIC and Geely were seen as "strategic investment partners" then, but in 2026 they became landmines for US market access.
Mercedes did not respond to requests for comment. Polestar last month simply gave up appealing and pulled out of the US; Volvo, also Geely-linked, kept its authorization. Same rules, three outcomes — Mercedes wants to fight for the next exemption slot.
15% is the political line, 20% is the shareholder fact. Mercedes lobbying Congress to move the political line so it clears the shareholder fact — the first time a German luxury automaker has publicly courted Washington over its "China stake."
via Bloomberg
