Could Mercedes Be Banned in the U.S.? A New Senate Bill Sparks Concern

German automaker Mercedes-Benz could face a ban on selling its cars in the U.S. following the passage of legislation by a U.S. Senate committee, the German news agency DPA reported Wednesday, as cited by hotnews.ro.

The U.S. Senate Commerce Committee has approved a major bill aimed at blocking and tightening restrictions against Chinese automakers (or companies where Chinese ownership exceeds 15%), seeking to completely close the U.S. market to these vehicles on grounds of national security and to protect the local industry. The legislation must also be approved by the U.S. Senate.

Less than 10% of Mercedes is owned by the Chinese automaker BAIC, while nearly 10% is owned by the company’s founder, Li Shufu, according to Agerpres.

The committee chairman, Republican Ted Cruz, called for the removal of the 15% cap. He questioned whether the figure was chosen to weaken Mercedes, the German rival of U.S. automaker General Motors.

Mercedes highlighted its presence in the U.S. market, with 160,000 jobs in the U.S., manufacturing vehicles in Tuscaloosa, Alabama, and Charleston, South Carolina, and working with 386 partner dealers in 49 states.

“The brand’s strong presence in the United States dates back to 1888, and with five million cars and pickup trucks currently on the roads - and over five million SUVs and nearly 500,000 pickup trucks assembled in the country to date - American customers have consistently demonstrated that Mercedes-Benz is one of the country’s most beloved brands,” according to a company press release.