Senate Bill Could Put the Brakes on Mercedes-Benz Sales in the U.S.

S. Senate could threaten Mercedes-Benz’s ability to sell cars in America. The Senate Commerce Committee voted Wednesday to approve a bill that would ban sales from any automaker with more than 15 percent ownership by Chinese entities. With Chinese groups holding nearly 20 percent of Mercedes-Benz, the German automaker finds itself in the crosshairs.

The proposed law targets companies where Chinese stakeholders own a controlling slice. 98 percent. But a full ban isn’t guaranteed. Senator Ted Cruz, the committee chair, told Reuters the bill needs revisions before becoming law. He noted that General Motors is pushing for the measure to give Cadillac a leg up, but added, “we would never consider” banning Mercedes outright.

Senator Bernie Moreno said the automaker would have until at least 2030 to comply if the bill passes as written, and waivers could allow Mercedes to sidestep the ban entirely. S. starting in 2027. Meanwhile, Volvo, also owned by Geely, got the green light to keep selling, provided it meets certain conditions.

For now. Mercedes drivers can breathe easy, but the road ahead looks bumpy.