US Senate panel approves China vehicle crackdown Bill that could hit Mercedes-Benz

WASHINGTON – The US Senate Commerce Committee approved legislation on July 22 to toughen a US government ​ban on Chinese automakers entering the American market that could bar German automaker Mercedes-Benz from selling vehicles in the United States.

Senator Ted Cruz, the committee chair and a Texas Republican, warned the Bill’s provision that would ban companies with more than 15 per cent ownership by Chinese entities would bar Mercedes-Benz from selling vehicles in the US because of its nearly 20 per cent passive Chinese investment.

He said the Bill required changes before becoming law.

Senator Bernie Moreno, an Ohio Republican, said Mercedes-Benz would have until 2030 to comply and could get waivers if needed from the ownership requirement.

Cruz said General Motors was pushing for the provision to get Mercedes-Benz out of the market and make its Cadillac brand more competitive. He said “we would never consider” banning Mercedes-Benz sales in the United States.

Mercedes-Benz and General Motors did not immediately respond to requests for comment.

Moreno and Senator Elissa Slotkin, a Michigan Democrat, proposed legislation to codify a regulation imposed by the Biden administration that effectively bans all Chinese automakers from selling passenger vehicles ​in the US and takes other steps to prevent China from entering ​the US light-duty market.

“We’re preventing an absolute, total, and complete destruction of our industrial base,” Moreno said.

Production shifts

Moreno noted that GM plans to shift production of its Chinese-made Buick Envision to the United States for the 2028 model year and said Ford has agreed to move Chinese-made Lincolns to the United States.

“I view that as a big victory,” Moreno said.

He added Google’s self-driving unit Waymo, which had been talking with Chinese automaker Geely about platforms coming from China, “has committed to looking at a Detroit-based manufacturer for their future platforms.”

Cruz said another Bill provision supported by GM to require automakers buy more expensive batteries from GM would add US$5,000 (S$6,400) to the vehicles’ cost. An amendment to revise the battery management software requirements failed.

Moreno said that amendment had been sought by Rivian, which did not immediately comment.

In June, Polestar said the Trump administration was forcing the electric-vehicle maker to stop selling vehicles in the United States beginning in the ‌2027 model year. The Sweden-based company is majority-owned by China’s Geely Holding.

Polestar’s sister brand and co-founder, Volvo Cars, said in May it received an authorisation, though it said it still must meet the rule’s specifications across its lineup sold in the US.

Bluetooth, Wi-Fi, cellular connectivity and ​some satellite communications technologies are covered under the rules based on national security concerns linked to the ability of vehicles to collect sensitive ​data on American owners. REUTERS