A bipartisan bill advanced by the Senate Commerce Committee could lead to a ban on the sale of connected vehicles in the U.S. by companies with more than 15% ownership by Chinese entities. This measure, sponsored by Sens. Elissa Slotkin, D-Mich., and Bernie Moreno, R-Ohio, would affect German automaker Mercedes-Benz, in which two Chinese investors collectively hold nearly 20% of the company's stock.
The legislation aims to expand existing restrictions, with proponents arguing it would prevent data collected on American roads from being transmitted to the Chinese government. "Chinese cars are surveillance packages on wheels, with the ability to collect on American citizens and transmit that data back to Beijing," Slotkin stated. Moreno added that the bill seeks to protect American manufacturing from what he described as China's intent to "destroy American manufacturing, gut the middle class and undermine our national security."
However, Sen. Ted Cruz, R-Texas, who chairs the Commerce Committee, expressed concerns that the bill, as written, could effectively ban Mercedes-Benz from the U.S. market without modifications. Cruz suggested that General Motors might be advocating for the measure to gain a competitive advantage for its Cadillac brand. He stated, "We would never consider" banning Mercedes-Benz sales in the U.S.
General Motors asserted that the legislation is not intended to target any specific automaker, emphasizing its support for policies that strengthen American manufacturing and the global competitiveness of U.S. companies. "As we have said many times, we can compete with anyone in the world when we are given a level playing field," GM said.
Mercedes-Benz acknowledged its substantial U.S. operations and affirmed its commitment to supporting legislation that protects national security. The automaker also stated its dedication to ensuring the bill does not disrupt its operations and that it will continue to protect its employees, dealers, suppliers, and customers.
The proposed bill does include a provision allowing manufacturers to seek authorization from the Commerce Department for vehicles that might otherwise be prohibited.
Sen. Moreno indicated that General Motors plans to shift production of its Chinese-made Buick Envision to the U.S. for the 2028 model year, and Ford has agreed to bring Chinese-made Lincolns to the U.S., which he views as a significant success for the legislation. He also noted that Waymo, Google's self-driving car company, has committed to exploring Detroit-based manufacturers for its future platforms, after discussions about using platforms from Chinese automaker Geely.
Cruz also pointed to another provision backed by GM that would mandate the purchase of more expensive batteries, potentially increasing vehicle costs by $5,000. This development follows a recent ban by the Trump administration on Polestar, a Sweden-based automaker majority-owned by Geely, from selling new connected vehicles in the U.S. starting in the 2027 model year. Polestar's sister brand, Volvo Cars, previously announced it had received approval to continue selling cars in the U.S.
The legislation must still pass both the full Senate and House of Representatives and be signed into law by the President to take effect.