Overview
- The Senate Commerce Committee advanced the Connected Vehicle Security Act on July 22, which would bar import, sale and operation of connected vehicles from automakers with more than 15% ownership by Chinese entities.
- Chinese investors together hold about 19.7% of Mercedes‑Benz, a level that would currently trigger the bill’s 15% threshold and put the company at risk of exclusion from the U.S. market.
- Mercedes CEO Ola Källenius said the company will engage U.S. officials, consider structural or production changes, and expand U.S. investment to protect its American business and workforce.
- The bill includes Commerce Department waiver and authorization paths and potential compliance windows to 2030, while the Commerce Department’s BIS decision to deny Polestar authorization shows the government is already enforcing connected‑vehicle rules.
- If enacted, the law would formalize new limits on data and supply chains, prompt shifts in where cars and parts are made, and raise costs and uncertainty for dealers, workers and suppliers in the U.S.