CEO Ola Kaellenius said the carmaker would make any needed changes to preserve U.S. sales, while weighing deeper local production as Washington scrutinizes Chinese ownership ties.
Mercedes-Benz said it will safeguard its U.S. business if Washington tightens restrictions on Chinese-linked automakers, after the U.S. Senate Commerce Committee advanced legislation that could in theory block the German carmaker from selling vehicles in the United States. CEO Ola Kaellenius said the company would make any adjustments needed to remain compliant and was closely engaged in the debate with relevant parties. The concern stems from Mercedes' shareholder structure: Chinese carmaker BAIC Group and Geely founder Li Shufu together own nearly 20% of its listed shares. The issue comes as Mercedes leans more heavily on the U.S. market to counter weaker performance in China, where sales have fallen amid a fast industry shift toward electric vehicles. The company has pledged more than $7 billion for its U.S. operations, including $4 billion through 2030 to expand SUV output in Alabama, and Kaellenius said engine production in the U.S. is also possible depending on talks over a revamp of a North American trade pact that could add U.S.-specific content rules. U.S. sales rose 15% in the first six months of the year, supporting profits because the combustion-engine models favored there carry higher margins than EVs.