There’s a new bill in the US House of Representatives that wants to modernize the NHTSA, among other changes. The long text includes items like improving recall fixes, looking at VIN and window sticker changes, addressing vehicle fires, and more.
But a closer look finds the bill could have some startling effects. A new report says that the Motor Vehicle Modernization Act of 2026 could ultimately remove Mercedes-Benz, possibly the largest builder of heavy trucks in the US, from this market. And it all comes back to China.
New Bill Looks To Ban ‘Adversary Governments’
Mercedes Tuscaloosa plantMercedes-Benz
Changes to the bill would ban vehicles from automakers with “any direct or indirect equity interest by a foreign-adversary government,” CNBC reports. That stops them from importing, selling, or manufacturing vehicles in the US.
Sources told the site that the language in proposed changes to the bill are clear, and that they could ban Mercedes-Benz from selling vehicles in the US. This is despite Mercedes-Benz owning and operating two US assembly plants that build SUVs and vans for the US and other markets around the world, employing more than 10,000 workers.
Mercedes-Benz Has Major Shareholders From China
The bill is sponsored by House Energy and Commerce Committee Chair Brett Guthrie, R-Ky. This attempt to stop Chinese automakers from gaining a toehold in the US would have possible exemptions for automakers that have been building vehicles in the US since at least January 1, 2021, but it seems that Mercedes-Benz would not qualify.
China is listed as a “foreign-adversary government,” as are Russia and North Korea. The largest individual shareholder of Mercedes-Benz is BAIC. The Chinese state-owned automaker holds 9.98% of Mercedes-Benz, and Tenaciou3, owned by Geely founder and Chair Li Shufu, owns 9.7%.
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This could also impact Volvo. The Swedish brand builds multiple vehicles at its own US plant, but parent company Geely holds an 80% share. Some smaller automakers could also be affected.
Changes Not Yet Published
Mercedes-Benz EQE Built In TuscaloosaMercedes-Benz
The changes CNBC has reported are not yet public, which leaves more potential gray areas. If it applies only to passenger vehicles, cars, pickups, and SUVs, that would largely limit the industry impact to Benz and Volvo.
If it applies to all vehicles, however, that would cause larger problems. Daimler Trucks, which includes Freightliner, builds close to half of all heavy trucks sold in the US. It is owned by the Mercedes-Benz Group, but BAIC has a share in that company as well as 6.49% of the truck company specifically. AB Volvo, the truck arm that controls Volvo Trucks and Mack, also has Geely as a major shareholder.
It isn’t clear if this was the intention of the new wording or an oversight. The Connected Vehicle Security Act, another recently introduced piece of automotive legislation against Chinese automakers, required specific authorization for Volvo to continue selling connected cars in the US. The automaker has received that approval.
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If Volvo was exempted from that legislation, it’s possible that it and Mercedes-Benz could get special permission should this new bill become law. US automakers, including Ford, have pushed back against Chinese automakers looking to move into the US. Mercedes-Benz, with factories in Southern states, is not likely to be the target or popular as collateral damage.
CarBuzz Insight – Why This Matters
Obviously, not being able to sell vehicles in one of the largest automotive markets is a problem for any major automaker. While we expect a brand such as Mercedes would likely campaign against such legislation and push for exceptions, the current political climate in the US is anything but stable at the moment. However, the wording in this bill as it stands could have implications far beyond Mercedes, which certainly has extensive resources to pursue changes and potential legal action. If the bill becomes law, smaller companies with fewer resources may not have the ability to push for loopholes or exceptions.
Mercedes Tuscaloosa plantMercedes-Benz
At this point, the bill is in review, so it may well receive more changes before going up for a vote. But with Chinese companies making more investments in global automakers, this likely isn’t the last word we’ll hear on this issue.
Source: CNBC
