US legislative initiative threatens Mercedes-Benz because of Chinese shareholders

The background is a legal initiative in the USA that is directed against Chinese manufacturers. Moreno introduced the bill together with Democratic Senator Elissa Slotkin. There is a ban on the import, production, sale and resale of connected vehicles from manufacturers in which Chinese shareholders hold more than 15 percent. Mercedes-Benz is almost 20 percent Chinese-owned: the Chinese car manufacturer BAIC holds almost ten percent, and another ten percent belongs to the founder of the manufacturer Geely, Li Shufu.

The USA is a very important market for Mercedes, especially given the weakening Chinese business. In the state of Alabama, the company operates one of its largest plants outside of Germany in Tuscaloosa. Mercedes boss Källenius himself helped build the factory in the 1990s. Mercedes also operates a factory in Charleston, South Carolina. Now the German car manufacturer is threatened with danger from American politics.

Farewell this week?

The law cleared its first hurdle in the US Senate in July, and now, according to Reuters, Senator Moreno is hoping for quick passage this week. Only Republican Senator Rand Paul speaks out against it. According to Reuters, he considers the draft to be an unfair attack on Mercedes-Benz.

Before his political career, Moreno was a car dealer himself. The Colombian native laid the foundation for his small empire with, of all things, a Mercedes car dealership that he bought in 2005.

According to Reuters, discussions are currently underway to ensure that Mercedes-Benz is not affected by the project. However, there are concerns that the German automaker can reach the 15 percent mark without harming itself, said Moreno.

Mercedes-Benz did not immediately comment on the US senator's comments, according to Reuters. Mercedes boss Källenius recently stated that they were in “close dialogue” with US politicians on the matter. The investment projects would also remain unaffected by a possible law. Mercedes recently announced that a total of more than seven billion dollars will be invested in the USA by the end of the decade.

In addition, the German car manufacturer pointed out a few months ago that no shareholder in the company holds more than ten percent. Furthermore, the major shareholders are not directly represented on the supervisory board and cannot make any business decisions. Mercedes also contributes to 60,000 jobs in the USA.