Mercedes-Benz faces being banned in the US and pulling tens of thousands of jobs as US lawmakers seek to squeeze the market.
Roughly 20 percent of the luxury carmaker is tied to China, which would be a massive problem if a new bill going through the House of Representatives passes.
HR 7389, known as the Motor Vehicle Modernization Act of 2026, was introduced by Representative Brett Guthrie in February, and it would effectively ban the sale or production of any auto group that has greater than 15 percent Chinese stake in its company.
The German car company largest investor is BAIC, a state-owned Chinese automaker, which owns a 9.98 percent share. Its second biggest shareholder is Chinese billionaire, Li Shufu, who owns a 9.69 percent share in the company, according to CNBC.
If the law does not exempt Mercedes-Benz, Americans could lose more than 10,000 jobs held by the company in the US.
The car company currently has two assembly plants in Tuscaloosa, Alabama, and Charleston, South Carolina.
More than five million vehicles have been produced at the Alabama plant since the company opened the facility in 1997, CNBC reported. More than 450,000 vans have been produced in South Carolina since 2006.
A Mercedes-Benz spokesperson told Bloomberg that the company would continue to work with lawmaker to ensure any new legislation would allow them to continue to serve its US customer base.
German luxury carmaker, Mercedes-Benz, could soon be banned in the US if a House bill passes as it is 20 percent owned by Chinese entities
HR 7389, known as the Motor Vehicle Modernization Act of 2026, was introduced by Representative Brett Guthrie in February, and it would effectively ban the sale or production of any auto group with more than 15 percent owned by a foreign-adversary government entity
Mercedes-Benz's second biggest shareholder is Chinese billionaire, Li Shufu, who owns a 9.69 percent share in the company. The German car company largest investor is BAIC, a state-owned Chinese automaker, who owns a 9.98 percent share
It is one of the best-selling car brands in America.
The Daily Mail has reached out to Mercedes-Benz and the Energy and Commerce Committee, which introduced the bill, for comment.
The bill is not exclusive to Chinese stakes, but any foreign-adversary government entity that has control of more than 15 percent, CNBC and Bloomberg reported. This would include China, Russia, and North Korea.
Two sources familiar with the legislation told CNBC that they believe, as currently written, the bill would ban Mercedes-Benz from the US.
'The language is unambiguous,' a former automotive policy advisor told the outlet.
It comes as the US tries to control how much Chinese automakers have in the American market.
The bill does allow exceptions for Chinese companies that are not state-backed.
If approved, it would backdate to January 1, 2026, and it would ban companies for five years.