Mercedes-Benz CEO Vows to Protect U.S. Business Amid Concerns Over Chinese Investors
Mercedes-Benz CEO Ola Kaellenius has pledged to safeguard the company's presence and operations in the United States amid growing political pressure over its ties with Chinese investors, including BAIC Group and Geely founder Li Shufu who collectively own nearly 20% of Mercedes' listed shares. The U.S. Senate Commerce Committee recently approved legislation that could expand a ban on Chinese automakers entering the American market, potentially affecting Mercedes due to its ownership structure. Mercedes is investing heavily in local production within the U.S., including $7 billion total investments with $4 billion allocated through 2030 for SUV manufacturing at an Alabama plant. The company aims to capitalize on strong demand for combustion engine vehicles and higher profit margins in this market, which helps offset declining sales in China where it has struggled against rapid EV adoption. Kaellenius emphasized the importance of adapting to geopolitical tensions between the U.S. and China while maintaining a robust presence in one of Mercedes' key growth markets.
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Topics: automotive foreign ownership regulations tariffs U.S.-China relations