[Stay on top of transportation news: Get TTNews in your inbox.] House Bill Could Bar Mercedes Over China Ownership Stakes Provision Sets 15% Foreign-Adversary Threshold Key Takeaways: - A House committee advanced an auto bill provision that would bar firms at least 15% owned by China or other adversaries from selling vehicles in the U.S. - Mercedes could be caught because China's state-owned BAIC owns nearly 10%, and Geely founder Li Shufu holds nearly 10%, pushing it above the 15% threshold. - The proposal is far from law, may change in a broader transportation package and must pass House and Senate as Mercedes talks with officials. U.S. lawmakers are weighing legislation that would ban carmakers with ties to foreign adversaries, a measure that threatens to upend Mercedes-Benz Group AG’s business in the world’s second-largest auto market because it’s partly owned by China. A provision in broader auto industry legislation that advanced recently through a key committee in the House of Representatives would prohibit the sale or production of vehicles in the U.S. by companies that are at least 15% held by foreign adversary countries, a list that includes China. The bill is still far from becoming law and will likely see changes. It’s poised to be combined with a broader package of transportation legislation before receiving a vote on the House floor. It would also need to pass the Senate. Still, the measure’s current construction risks making the iconic maker of German luxury cars a casualty of Washington’s growing push to keep China out of the domestic auto industry. Mercedes declined to comment. Representatives for the White House and House Speaker Mike Johnson didn’t immediately respond to requests for comment. The automaker is in talks with government officials to find a solution, said a person familiar with the matter who
House Bill Could Bar Mercedes Over China Ownership Stakes - TT
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