A new bipartisan bill in Congress aimed at limiting Chinese influence in the U.S. auto industry could end up banning new Mercedes-Benz vehicles in the United States.

The Motor Vehicle Modernization Act of 2026 , led in the House by Rep. Brett Guthrie (R-KY), would block automakers from making, selling, or importing vehicles in the U.S. for five years if they have direct or indirect ownership ties to governments labeled as U.S. adversaries, including China, Russia and North Korea .

Under proposed U.S. legislation, even automakers already manufacturing in the United States could lose exemptions if they exceed certain foreign government ownership thresholds.

However, people familiar with the bill say its language could unintentionally capture Mercedes-Benz because its largest shareholder is BAIC, a Chinese state-owned automaker, CNBC reports.…