Overview
- Reporting on May 29 showed Mercedes‑Benz’s shareholder mix could fall inside the bill’s reach, drawing fresh attention to the measure’s ownership language.
- The Motor Vehicle Modernization Act would bar companies with “any direct or indirect equity interest by a foreign‑adversary government” from importing, selling or making vehicles in the U.S. for five years after enactment.
- The exemption for firms that manufactured passenger vehicles in the U.S. for at least five years before Jan. 1, 2026, does not apply to companies with the banned foreign‑adversary equity interest in the bill’s text.
- Mercedes‑Benz’s largest shareholder is state‑owned BAIC with a 9.98% stake and Li Shufu holds 9.69%, a combined roughly 19.67% stake, and the company operates major U.S. plants employing over 11,000 workers.
- Auto industry groups and some lawmakers say the bill’s vague ownership tests could trigger large unintended effects on U.S. factories and supply chains, and sponsors have not yet moved a companion measure in the Senate so the language may be revised.