Mercedes-Benz Faces Potential U.S. Ban Over Chinese Ownership Rules

S. Senate could force Mercedes-Benz to stop selling cars in America by 2030 if the automaker doesn’t reduce its Chinese ownership stake. The Senate Commerce Committee recently approved legislation that would bar any company with at least 15% Chinese ownership from selling vehicles in the United States.

Mercedes-Benz currently has nearly 20% of its shares held by Chinese investors, putting it directly in the crosshairs.

S. market. Senator Bernie Moreno added that the company has until 2030 to comply and could also apply for waivers. 98% of its voting rights, making it the largest individual shareholder. 69% stake through an investment firm.

The crackdown follows a similar move against Polestar, the Swedish electric car brand majority-owned by Geely. S. due to new rules targeting connected vehicles with Chinese software. Volvo, another Geely-owned brand, was granted an exemption after proving it could manage data security.

Polestar has decided not to fight the ruling and will instead focus on Europe. A company spokesman said the brand is pivoting to markets where it can achieve profitable growth.