Proposed Bill Could Hit Mercedes-Benz Hard In Tuscaloosa County
As it is currently written , the Motor Vehicle Modernization Act of 2026 could have a direct negative impact on auto production and employees of the Mercedes-Benz plant in Tuscaloosa County. The bipartisan bill backed by the Trump Administration bans importing, selling, or manufacturing vehicles in the U.S. if adversary nations (like China, North Korea or Russia) hold a certain equity stake.
Since there are Chinese with minority ownership in Mercedes, the legislation could have unintendeded consequences at MBUSA facilites in Vance and other facilties across the country. Mercedes-Benz directly employs over 11,000 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 are the some 6,000 at the Vance plants.
The Vance plant has produced 5 million vehicles since it began production in 1997 and is a major contributor to the economy and civic life of Tuscaloosa/Northport.
The Problem
The German automaker's largest shareholder is BAIC (Beijing Automotive Group), a Chinese state-owned company, which holds roughly a 10% stake. Chinese billionaire Li Shufu reportedly owns just under 10% according to CNBC. The network also reports that exemptions included in the bill would not apply to Mercedes, which could create a major problem.
Passage of the legislation sponsored by Congressman Brett Guthrie (R-Ky), as written could have a devastating economic impact on Tuscaloosa County and the state as Mercedes produces an estimated $1.5 billion for the state economy, much less the jobs the plant provides.
Introduced in February, the legislation was advanced by the House Energy and Commerce Committee on May 21st by an overwhelming 48-1 vote. It now moves to the house floor for consideration as part of the broader surface transportation reauthorization package.
The Upper Chamber
There has been no similar legislation introduced in the Senate as yet. While he has not publicly commented about the Motor Vehicle Modernization Act of 2026, Alabama Senior Senator and GOP gubernatorial candidate Tommy Tuberville has actively championed the goals of similar anti-Chinese legislation.
He is co-sponsor of the Connected Vehicle Security Act of 2026 which would defend the American auto industry from, "...predatory Chinese automobiles by banning them and their connected components from the American market."
So far Mercedes-Benz has not commented on the legislation.
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