The US Senate Commerce Committee has approved a bill that would ban car sales from companies over 15% owned by Chinese entities, putting Mercedes-Benz in the spotlight. The measure has been introduced to address concerns over national security and the influence of Chinese companies in the US automotive market.
Mercedes-Benz, with 20% of its investment coming from China, is one of the companies that would be affected by the proposed legislation. However, the bill's authors have stated that Mercedes would have until 2030 to comply and could seek waivers. Senator Ted Cruz has suggested that General Motors is supporting the proposal, potentially to allow Cadillac to gain market share if Mercedes were to exit the US market.
View Price on AmazonIn other automotive news, BMW is recalling over 318,000 vehicles in the US due to starter motors that may overheat and catch fire. The recall affects various models, including the 3 Series, 4 Series, X3, X4, Z4, and the Toyota Supra. Hyundai has reported a 21% decline in its global Q2 operating profit compared to the same period last year, with sales in China slumping 33%.
Porsche has announced plans to cut an additional 5,000 jobs in Germany, bringing its total reduction in headcount to 8,900, as part of its efforts to reduce costs. Meanwhile, Ford has partnered with Geely to allow the Chinese automaker to use some of its dormant capacity at its plant in Valencia, Spain, and jointly develop electric vehicles.
Aston Martin has secured $736 million in debt financing from HPS Investment Partners, resulting in a 9% increase in its shares in London. These developments highlight the ongoing shifts and challenges in the global automotive industry.
Source: thedrive.com
