Mercedes faces sales ban amid China crackdown as another major car brand quits US market

One of the most popular car brands in the world could face a sales ban in the United States under plans to crack down on Chinese vehicles and technology.

The US Senate Commerce Committee gave the green light to a new ban on Chinese vehicles entering the US market.

This has been pushed by Senator Ted Cruz as the US continues its attacks against companies that manufacture in China or work with Chinese businesses.

Experts have warned that Mercedes-Benz could find itself unable to sell new vehicles in the United States, given its links to China.

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The German manufacturer is 20 per cent owned by Chinese companies, prompting Mercedes to call for the new measures to be eased.

Mr Cruz, the Republican senator for Texas, said the Connected Vehicle Security Act outlines how companies with more than 15 per cent ownership by Chinese entities would face a ban.

Despite this, he noted that changes would still need to be made to the terms of the Act before it could be enshrined in law.

Senator Bernie Moreno said Mercedes has a deadline of 2030 to comply with the terms, adding that they could use waivers for the ownership requirement.

The Republican Senator from Ohio added: "We're preventing an absolute, total, and complete destruction of our industrial base."

Some automakers have already hinted at supporting a ban on their rivals to ensure they are more successful.

Ted Cruz said General Motors had been pushing for the provisions to remove Mercedes-Benz from the US market so its Cadillac brand could thrive.

In response, GM said it did not support the restriction of sales for any individual automaker.

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GM added that it "supports policies that protect and strengthen American manufacturing and the global competitiveness of US automakers."

The Detroit-based manufacturer plans to produce the Buick Envision in the United States and axe its manufacturing process in China by 2028.

Mercedes-Benz said it would continue working to protect its employees, dealers, suppliers and customers throughout the process.

The German brand said it supports legislation to protect US national security, but stated that it did not want its operations to be affected.

It follows the decision from premium manufacturer Polestar to exit the US market after facing a ban on selling its electric vehicles.

Only six per cent of Polestar's sales came from the United States, prompting the manufacturer to place further emphasis on European sales and operations.

The Polestar 2, Polestar 4 and Polestar 5 electric models are built in China, and it would be selling through existing stock in the US.

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