Senate Committee Advances Bill That Could Ban Mercedes Sales

A U.S. Senate bill aimed at Chinese auto production ownership could shut down production at Mercedes-Benz facilities in Vance and Charleston; SC. Mercedes dealerships would also be affected.

The Legislation

As first reported by Tuscaloosa Thread in June, the Motor Vehicle Modernization Act of 2026 passed out of the U.S. House Energy & Commerce Committee on a May 21 48–1 vote, but it has not been taken up in the full U.S. House yet.

Now a companion bill passed a U.S. Senate Commerce Committee vote earlier this week. It will now go to the floor for debate. Just when that could happen is not certain.

The bills are part of a bipartisan effort to reduce Chinese ownerships in the United States. It would ban the import, production, sale and resale of vehicles in the U.S. buy companies in which Chinese shareholders own more than 15% interest.

Lawmakers in both parties have expressed national security concerns over Chinese investors.

The proposed ban would impact the German automaker because China's largest automaker BIAC owns 10% of Mercedes while the Chinese billionaire, Li Shufu, owns another 10% of Mercedes.

Ulterior Motives?

Senator Ted Cruz (R-TX), who chaired the senate committee vote, accused General Motors of supporting the provision in an effort to weaken Mercedes-Benz and make Cadillac more competitive.

“GM is pushing for this provision to get Mercedes-Benz out of the market,” Cruz told committee members.

“We would never consider” banning Mercedes-Benz, Cruz told reporters after the committee vote, adding that the bill would need to be changed before becoming law.

The ban would have a devastating impact on U.S. Mercedes employees. The company directly employs some 25,000 people in the U.S., with roughly 8,000 working in manufacturing and the remainder in corporate, sales, and distribution roles. The largest block of Mercedes employees is the some 6,000 at the Vance plants.

The legislation, if passed by both chambers would not have an immediate impact on Mercedes. Senator Bernie Moreno (R-Ohio}, said Mercedes would have until 2030 to comply or seek a waiver.

Mercedes Alabama History

Mercedes-Benz announced in April 1993 that it would build its first U.S. passenger-vehicle manufacturing plant, selecting Tuscaloosa County. Production officially began in January 1997.

Mercedes has produced some 5-million vehicles at its Tuscaloosa County plant since it opened. That makes it one of the most productive automotive facilities in the United States.

Mercedes and General Motors have declined to comment on the committee action.