A U.S. Senate committee advances a bill that would impose restrictions on foreign ownership for companies tied to connected vehicle technology, raising the possibility that some automakers could face barriers in the U.S. market. The bill, known as the Connected Vehicle Security Act, would set a 15% threshold for foreign ownership, according to reporting. Because Mercedes-Benz has close to 20% Chinese investment, advocates of the proposal argue it could apply to the company even if the firm operates through existing corporate structures.
Other reporting highlights that Mercedes-Benz’s largest individual shareholder is BAIC, a Chinese state-owned company. The bill’s progress also includes criticism from Republican Senator Ted Cruz, who warns the measure could harm Mercedes and argues that other companies, including GM, are supporting the legislation. While the committee’s approval moves the proposal forward, the measure is not described as law yet. The reporting indicates the core debate centers on whether foreign investment in connected vehicle-related products and services poses security risks significant enough to justify the ownership limits.
