Republican Senator Bernie Moreno stated that Mercedes-Benz will not be prohibited from selling automobiles in the United States, despite a bill aimed at restricting vehicles linked to China. This statement came after Senator Rand Paul, of the same party, suggested that the current wording of the text could exclude the German brand from the North American market.
The controversy lies in a provision of the legislative proposal that bans the sale of vehicles in the US by companies with over 15% Chinese ownership. Currently, the Chinese state-owned enterprise BAIC (Beijing Automotive Group) holds 9.98% of Mercedes-Benz, making it its largest individual shareholder. Furthermore, Li Shufu, founder and chairman of Geely, controls another 9.69% through an investment company, totaling nearly 20% combined ownership.
Moreno assured, citing the Washington Post, that the President of the United States would not sign a bill prohibiting Mercedes-Benz in the US, adding that a way to manage the situation needs to be found. The senator, who co-authored the bill with Democratic Senator Elissa Slotkin, raised doubts about Mercedes-Benz's ability to reduce its Chinese stake below 15% without harming the corporation itself. He also mentioned the need to find a solution for Volvo, whose majority shares belong to Geely, and Aston Martin, which would be affected, given that Geely owns 17% of this British manufacturer.
In July, when the text was approved by the Senate Commerce Committee, Moreno argued that the restrictions would only take effect in 2030 and that there would be a procedure for exemption requests. At the same time, as reported by Bloomberg, Mercedes-Benz began pressuring lawmakers to have the proposal relaxed.
Senator Moreno has ties to the brand, having owned a Mercedes-Benz dealership in Ohio, sold in 2019, and his son is a partner in a new brand dealership in the state, according to the specialized website CBT News.
Titled the Connected Vehicle Security Act, the bill was introduced in April and expands a rule implemented during the Joe Biden administration, which in practice already prevents Chinese cars from entering the US. The legislation proposes to ban the importation, manufacturing, and sale of vehicles with hardware and software components of Chinese origin, under the pretext of national security. Slotkin described Chinese cars as 'surveillance packages on wheels.'
Moreno sought to pass the text urgently before the Senate recess, which runs until November, but failed to achieve the necessary unanimous consensus. According to Slotkin, Rand Paul is the only senator who opposes the bill. He told Reuters that he considers the proposal an unfair attack on Mercedes-Benz and stated that he would cease his opposition if the automaker were excluded.
Due to the deadlock, the vote is expected to be postponed until after the midterm elections, scheduled for November 3rd, when Americans will renew all members of the House of Representatives and approximately one-third of the Senate.