Senate bill could bar Mercedes-Benz connected cars over Chinese ownership stakes

The Senate Commerce Committee advanced a bipartisan bill that would bar the sale of connected vehicles in the United States by any automaker with 15% or greater ownership by Chinese entities. Sponsored by Elissa Slotkin and Bernie Moreno, the proposal targets firms like Mercedes-Benz, where two Chinese investors together hold close to 20% of the company. Lawmakers argue the rule prevents data from U.S. roads reaching the Chinese government, while critics, including Committee Chair Ted Cruz, claim the measure could unfairly eliminate Mercedes-Benz unless amended.

General Motors, which supports the bill, says it aims to protect American manufacturing and ensure a level playing field. Mercedes-Benz emphasized its extensive U.S. presence and pledged to work for legislation that does not harm its operations. The bill also provides a pathway for manufacturers to seek Commerce Department waivers, and it includes provisions that could raise vehicle costs by requiring the purchase of more expensive batteries from GM. The legislation still requires approval by the full Senate and House and the president's signature.