Ted Cruz Warns That New Legislation to Limit Chinese Automakers Could Unintentionally Bar Mercedes-Benz from the U.S. Market

Ted Cruz warned that the Senate Commerce Committee’s bipartisan legislation to limit Chinese automakers could unintentionally exclude Mercedes-Benz from the American market. During the markup of the Motor Vehicle Modernization Act of 2026, Cruz noted that the bill’s 15% Chinese ownership threshold would affect Mercedes-Benz, as two Chinese investors currently own nearly 20% of its shares. The bill aims to codify federal restrictions on Chinese-linked vehicle technology to protect national security from sensitive data collection. While the legislation seeks to strengthen the domestic industrial base, Cruz stated that the bill would require adjustments before becoming law to ensure Mercedes-Benz remains available to consumers. Senator Bernie Moreno, who introduced the bill with Senator Elissa Slotkin, suggested that Mercedes-Benz would have until 2030 to comply with the ownership limits or request a waiver. Cruz also accused General Motors of supporting the provision to weaken its primary competitor. Mercedes-Benz currently employs over 10,000 people in the U.S. and operates assembly plants in Alabama and South Carolina.

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