Mercedes-Benz is unlikely to be forced out of the U.S. market under a proposed bipartisan bill targeting vehicles and automakers with Chinese ownership or technology ties, although lawmakers still need to revise the legislation.

The bill would restrict the importation, manufacture, and sale of vehicles using hardware or software linked to China. It would also prevent automakers with more than 15 percent Chinese ownership from selling vehicles in the United States.

The measure recently stalled in the Senate and is expected to face further delays after the midterm election. It would build on restrictions introduced by the Biden administration that have already effectively prevented Chinese vehicles from being sold in the U.S.

Mercedes-Benz ownership raises concerns

Mercedes-Benz currently has two significant Chinese stakeholders. Beijing Automotive Group owns 9.98 percent of the automaker, while Eric Li Shufu, founder and chairman of Geely, holds another 9.7 percent.

Those holdings have raised questions about whether Mercedes-Benz could exceed the bill’s proposed ownership threshold. Republican Senator Rand Paul reportedly first highlighted the possibility that the legislation could unintentionally block Mercedes-Benz from the American market.

Republican Senator Bernie Moreno, who is sponsoring the bill with Democratic Senator Elissa Slotkin, acknowledged that changes would be needed. Moreno said the legislation should not result in the president signing a measure that bans Mercedes-Benz from the United States, while also noting that lawmakers must determine how to address the company’s ownership structure.

He questioned whether Mercedes-Benz could reduce its Chinese ownership below 15 percent without seriously harming the company. The bill’s language could also affect Volvo, which is majority-owned by Geely.

Aston Martin could also be affected

Mercedes-Benz and Volvo are not the only automakers potentially affected by the proposed limit. Geely also owns a 17 percent stake in Aston Martin, placing that investment above the bill’s 15 percent threshold.

As drafted, the measure could therefore have implications for several established automakers with Chinese ownership connections. However, the source indicates that lawmakers are still working on provisions intended to prevent the bill from barring Mercedes-Benz and allowing affected companies such as Volvo to continue operating in the U.S. market.