Mercedes-Benz caught in US push against Chinese-linked automakers

German automaker Mercedes-Benz could face a ban on selling its vehicles in the United States after legislation was approved on Wednesday by a U.S. Senate committee, according to DPA.

The U.S. Senate Commerce Committee approved a major bill aimed at expanding and tightening restrictions on Chinese automakers—or companies with more than 15% Chinese ownership.

The proposal seeks to completely close the U.S. market to such vehicles, citing national security concerns and the need to protect domestic industry. The legislation must still be approved by the full U.S. Senate, CE Report quotes AGERPRES.

Less than 10% of Mercedes-Benz is owned by the Chinese automaker BAIC, while nearly 10% is owned by the company's founder, Li Shufu.

Committee Chairman Ted Cruz, a Republican, called for removing the 15% ownership threshold. He questioned whether the figure had been chosen to weaken Mercedes, a German competitor to U.S. automaker General Motors.

Mercedes highlighted its long-standing presence in the United States, noting that it supports 160,000 jobs, manufactures vehicles in Tuscaloosa, Alabama, and Charleston, South Carolina, and works with 386 dealership partners across 49 states.

"Our strong presence in the United States dates back to 1888, and with five million cars and vans currently on American roads—and more than five million SUVs and nearly 500,000 vans assembled in the country—American customers have consistently shown that Mercedes-Benz is one of the nation's most beloved automotive brands," the company said in a statement.

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