US Senate panel approves bill cracking down on the sale of Chinese vehicles

Cruz said General Motors was pushing for the provision to get Mercedes-Benz out of the market and make its Cadillac brand more competitive. He said "we would never consider" banning Mercedes-Benz sales in the United States. GM said in response the legislation isn't about any individual automaker and added the automaker "supports policies that protect and strengthen American manufacturing and the global competitiveness of U.S. automakers." Mercedes-Benz noted its extensive U.S. operations and said it "continues to support legislation designed to protect U.S. national security. Mercedes-Benz also remains committed to ensuring that any legislation does not impact our operations. The company will continue to safeguard its employees, dealers, suppliers, and customers." The U.S. Senate Commerce Committee approved legislation on Wednesday to toughen a government ban on Chinese automakers entering the American market that could bar German automaker Mercedes-Benz from selling vehicles in the United States. Senator Ted Cruz, the committee chair and a Texas Republican, said the bill's provision that would ban companies with more than 15% ownership by Chinese entities would bar Mercedes-Benz MBGn.DE from selling vehicles in the United States because of its nearly 20% passive Chinese investment. He said the bill required changes before it could become law. Senator Bernie Moreno, an Ohio Republican, said Mercedes-Benz would have until 2030 to comply and could get waivers if needed from the ownership requirement if necessary. Moreno and Senator Elissa Slotkin, a Michigan Democrat, proposed legislation to codify a regulation imposed by the Biden administration that effectively bans all Chinese automakers from selling passenger vehicles in the U.S. and takes other steps to prevent China from entering the U.S. light-duty market. "We're preventing an absolute, total, and complete destruction of our industrial base," Moreno said. Moreno noted that GM plans to shift production of its Chinese-made Buick Envision to the United States for the 2028 model year and said Ford has agreed to move Chinese-made Lincolns to the United States. "I view that as a big victory," Moreno said. He added Google's self-driving unit Waymo, which had been talking with Chinese automaker Geely about platforms coming from China, "has committed to looking at a Detroit-based manufacturer for their future platforms." Cruz said another bill provision supported by GM to require automakers buy more expensive batteries from GM would add $5,000 to the vehicles' cost. An amendment to revise the battery management software requirements failed. Moreno said that amendment had been sought by Rivian RIVN.O, which did not immediately comment. Last month, Polestar PSNY.O said the Trump administration was forcing the electric-vehicle maker to stop selling vehicles in the U.S beginning in the 2027 model year. The Sweden-based company is majority-owned by China's Geely Holding. Polestar's sister brand and co-founder, Volvo Cars, said in May it received authorization to keep selling vehicles in the U.S., though it said it still must meet the rule's requirements. Bluetooth, Wi-Fi, cellular connectivity and some satellite communications technologies are covered under the rules based on national security concerns linked to the ability of vehicles to collect sensitive data on American owners.

US Senate panel approves bill cracking down on the sale of Chinese vehicles

GM and Mercedes-Benz respond

Senate panel advances tougher China vehicle restrictions

Production shifts, battery rules and affected technologies

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