US Senate panel advances bill tightening ban on Chinese automakers

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 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.

Also Read: House lawmakers introducing bill to toughen US ban on Chinese vehicles


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.

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.

Also Read: US industry, lawmakers plead with Trump: Don't open door to Chinese cars at Xi summit

PRODUCTION SHIFTS TO UNITED STATES

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 , which did not immediately comment.

Last month, Polestar 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.