Mercedes-Benz commits to safeguarding its U.S. operations as U.S. legislation threatens sales over Chinese shareholder concerns.
Mercedes-Benz CEO Ola Källenius pledged to defend the company’s U.S. business, which includes over $7 billion in planned investments, as Washington scrutinizes its Chinese backers. The U.S. Senate Commerce Committee recently advanced legislation that could restrict sales for automakers with significant Chinese ownership, potentially impacting Mercedes due to its nearly 20% stake held by BAIC Group and Geely’s Li Shufu.
The company reported second-quarter results while monitoring the geopolitical debate, emphasizing its engagement with U.S. policymakers. Mercedes has faced declining sales in China but remains strong in the U.S., where demand for its traditional vehicles persists. The automaker is expanding local production to mitigate risks from tariffs and regulatory pressures.
Källenius acknowledged the competitive U.S.-China landscape, stating the company would adjust to comply with regulations while preserving its market presence. The situation highlights broader tensions over foreign investment and supply chain dependencies in the auto sector.