On the Dash:
- Sen. Bernie Moreno (R-Ohio) says the Chinese vehicle bill will not ban Mercedes-Benz from selling in the U.S.
- Mercedes-Benz has nearly 20% Chinese ownership, which is above the bill’s 15% cap.
- Sen. Rand Paul (R-Kentucky) is the lone opponent as Moreno seeks fast-track approval this week.
According to Senator Bernie Moreno (R-Ohio), Mercedes-Benz will not be banned from selling vehicles in the U.S. under the Chinese vehicle bill. Per the Reuters report, Sen. Moreno said this week that talks are ongoing to make sure that doesn’t happen. The Senate Commerce Committee approved the Connected Vehicle Security Act in July, which would bar automakers with more than 15% Chinese ownership from selling vehicles in the U.S.
Since Sen. Moreno has ties to the brand, having been a former Mercedes-Benz dealer who sold Mercedes-Benz of North Olmsted in 2019, his son is now part of a partnership behind a new Mercedes-Benz dealership in Sunbury, Ohio.
Notably, Chinese entities hold nearly 20% of passive ownership in Mercedes-Benz. The open question is whether the automaker can reach 15% without debilitating its business, Moreno said.Â
Volvo, Aston Martin and Lotus face same ownership cap as Mercedes-Benz
Other automakers with Chinese backing could also land on the wrong side of the 15% line. Since Volvo Cars is majority owned by China’s Geely Holding, Moreno said lawmakers are discussing how Volvo could keep selling vehicles in the U.S.
Moreno also noted that Aston Martin and Britain’s Lotus could be barred, since Geely owns 17% of Aston Martin and holds a majority stake in Lotus.
Sen. Rand Paul remains the lone holdout
However, Moreno hopes to win fast-track approval this week, before the Senate adjourns until November. But, in the meantime, talks will continue with Sen. Rand Paul, R-Ky., according to Reuters.
While Paul blocked an earlier fast-track attempt on Sept. 24, Democratic Sen. Elissa Slotkin, the bill’s other chief sponsor, said last week that all Democrats support moving forward, with Paul as the only opponent. However, Paul has said the bill unfairly targets Mercedes-Benz, but that it could move forward if the automaker is removed from it.
The House version now has more than 100 co-sponsors. Automakers and legislative aides hope to secure full passage this year, according to Reuters.
Trump says he’s open to Chinese vehicles in the U.S.Â
President Donald Trump told Fox News earlier this month that he would accept Chinese car companies building vehicles in the U.S. The remarks sparked alarm among automakers. Automakers, suppliers and dealers have urged Trump to keep policies that shut out Chinese automakers seeking to sell, import or build vehicles in the U.S.
A Biden administration regulation from early 2025 effectively banned Chinese automakers from selling or building passenger vehicles in the U.S. The rule cites concerns that sensitive driver data could be sent to China. Washington also maintains tariffs above 100% on Chinese electric vehicles.
China’s foreign ministry has previously urged the U.S. to respect market economy laws and fair competition. It has criticized earlier proposals against Chinese companies and argues that Chinese cars are popular globally because of technological innovation.
