Mercedes May Be Banned From Sales In The US.

Mercedes-Benz could be cut out of the US market after a US Senate committee backed legislation tightening restrictions on automakers with significant Chinese ownership.

The law still needs to be approved by the Senate, then the House of Representatives and the US president, so the changes are not yet final.

The law would ban the import, production, and sale of connected vehicles from manufacturers in which Chinese entities have more than a 15% ownership stake. Mercedes-Benz could be among the firms affected, as Chinese investors, including Geely and BAIC, together own almost a fifth of the company.

Lawmakers cite national security concerns as the law raises concerns about data collected by modern connected vehicles through wireless connectivity, satellite navigation and other communications technologies. The law aims to further limit the influence of Chinese firms in the US auto industry.

Board President Ted Cruz warned that the law in its current form could also inadvertently affect Mercedes-Benz, and he expects further changes to the text. Senator Bernie Moreno explained that if the law is passed, the manufacturer would probably have until 2030 to adjust, and that deviations or exceptions would be possible.

If the bill is passed in its current form, it would mark a new step in the tightening of trade-adjustment and technology relations between the United States and China. At the same time, it could have a significant impact on European car manufacturers that have Chinese companies among their owners or cooperate more closely with Chinese partners.

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