Mercedes CEO Ola Källenius says the company has no intention of leaving the US market despite a potential ban due to Chinese investment. The US Senate Commerce Committee recently voted for legislation that could ban any automaker with more than 15% Chinese investment from the US market. Mercedes has 20% Chinese ownership, putting it at risk of being banned.
Källenius stated, "If we need to make adjustments to comply with anything, we will make sure that we protect our presence and our business in the US." He also mentioned that Mercedes is "deeply involved" in conversations with officials to work out a solution. This could involve investing more in US manufacturing, such as building a new engine factory.
View Price on AmazonGlobal sales of Mercedes' passenger cars dropped 7% in the second quarter, but sales in the US specifically rose by 10%. This makes it clear where the company should focus its efforts. Unfortunately, the US market is the one threatening to push Mercedes out due to its Chinese ownership.
Republican Senator Ted Cruz of Texas opposed the bill, saying that banning Mercedes from the US would be unnecessary. He also claimed that General Motors supported the measure in hopes that Cadillac could regain its lost market share. However, GM denied that its advocacy of the bill is tied to any single competitor.
Source: thedrive.com
