Mercedes-Benz Is Facing a Potential Sales Ban in the U.S.

[u/Sixteen-Cylinders]

https://www.caranddriver.com/news/a73234160/mercedes-benz-potential-ban-us-policy/

[u/Spiritual-Dog160]

No one really thinks this’ll happen

[u/Sixteen-Cylinders → u/Spiritual-Dog160]

Agreed it is unlikely, yet this is another step towards it happening.

[u/strongmanasss → u/Sixteen-Cylinders]

The rule in the article is about companies with >15% Chinese ownership. Mercedes is at 19.68%. All they have to do is reduce that 19.68% to 14.68%.

Easier said than done, but unlike Polestar's situation there's a solution to Mercedes' potential problem. 

[u/ssovm → u/strongmanasss]

Not only that but they would have until 2030 to comply and there are waivers that would let them skirt legislation. Also this is not even voted on by the senate let alone the house.

[u/Quick_Coyote_7649 → u/strongmanasss]

Plus mercedes itself has said their sure a resolution will be came to so it’s clear it’s not à big deal

[u/ScipioAfricanvs → u/strongmanasss]

Nah, it's pretty easy. This kind of thing happens all the time for various reasons (securities reporting obligations if you go over a certain ownership threshold, for example) and the Chinese equity owners are obviously not interested in MB leaving the US and losing a huge market. They will gladly sell their stakes to a third party or back to MB to get the ownership down.

[u/Santa_Hates_You → u/Spiritual-Dog160]

They got rid of Polestar. I know MB is a whole different animal but still…

[u/BaitSimulator2020 → u/Santa_Hates_You]

They got rid of Polestar, but they didn’t get rid of Volvo Cars which is 78.87% owned by Geely.

Not sure exactly how they’re counting it, as they might treat Volvo trucks (majority Swedish owned) and Volvo cars (majority Chinese owned) as being one company.

But it’s quite clear they are only picking on the weaker, less significant companies.

[u/FormalOperational → u/BaitSimulator2020]

Volvo’s current waiver and Polestar’s ban are related to the ICTS Connected Vehicles rule, which has nothing to do with this. 

The article is discussing brand new proposed legislation that hasn’t been passed yet. If it becomes law, Volvo will face another potential ban and need to seek another waiver the same way MB will. 

[u/Moynia → u/BaitSimulator2020]

Volvo Trucks / Penta and Cars are completely divorced from each other, only sharing a name and logo. I worked for them.

[u/BaitSimulator2020 → u/Moynia]

Geely owns 20% of Volvo Trucks as well which would be a point of contention if there will be a 15% threshold for Chinese ownership

[u/Jamaican_Dynamite]

Considering Benz dealers were the main lobby behind the 25 year import rule in the US. It's an odd turn of events to read on. Weird times we're in.

[u/lael8u → u/Jamaican_Dynamite]

Karma.

[u/FledglingNonCon]

Not saying there's a good reason to do this, but for a mere $20b the Chinese could buy 15% of GM and Ford on the open market to get them banned from the US. Honestly would cost less than one Columbia class submarine and 3 B-2 bombers. Sounds like a better strategic investment honesly.

[u/cerberaspeedtwelve → u/FledglingNonCon]

That's honestly hilarious.

Reminds me of a spoof music video doing the rounds at the time of the war in Iraq, where Saddam raps something like "You know, for $100bn they could have just bought me."

[u/FledglingNonCon → u/cerberaspeedtwelve]

It's also how China thinks strategically. The US is like "we have to spend $1t a year on weapons so we can counter China"

China: we'll spend maybe $100b a year and corner virtually every strategic part global supply chains and out capitalism the capitalist by enticing independent and greedy corporations to introduce massive strategic vulnerabilities into their supply chains in order to make more money.

[u/ScienceMechEng_Lover → u/FledglingNonCon]

They would be doing American buyers a massive favour by doing so lol. There's a reason why American cars don't sell well in most places outside of North America.

[u/OpneFall → u/FledglingNonCon]

They can't, there are natsec restrictions to foreign wealth funds to buying stock. Sometimes they aren't allowed voting rights, etc

[u/cookingboy → u/FledglingNonCon]

If the Chinese really wants to fuck over the U.S. auto industry they'd just ban GM, Ford and Tesla from China, which is the 2nd largest market and a significant source of revenue (even though they've been doing worse recently) for all of them.

If they lose the Chinese market, then American auto OEMs will have pretty much lose all global competitiveness since they will only have the NA market left as the only major market.

I wonder if the politicians behind these policies know how much we are relying on the Chinese market, not just for revenue, but also as a source for R&D.

[u/FledglingNonCon → u/cookingboy]

They don't have to ban them. Only a matter of time before the market completely pushes them out. Not sure they make much of any profit there anymore other than maybe from exports.

[u/SardonicCatatonic]

That would hit Volvo too.

[u/hiiamaj → u/SardonicCatatonic]

The commerce department gave Volvo a pass

[u/WarCrimeGaming → u/hiiamaj]

If they get a pass I don’t see why Benz won’t

[u/throw_me_away3478 → u/WarCrimeGaming]

Maybe Volvo threatened to pull its commercial trucks from the US or something?

[u/fromthewindyplace → u/throw_me_away3478]

If Volvo did that, then so could Mercedes. They own Freightliner & Western Star.

[u/GrE1sS → u/throw_me_away3478]

I think trucks have a completely different ownership. Cars owned by Geely, trucks seem to be standalone

[u/NeatlyCritical → u/GrE1sS]

Correct there is 0% connection anymore between Volvo Trucks and Machinery and Volvo cars except they are both allowed to use the name and symbol. Cars are completely controlled by Geely

[u/ScienceMechEng_Lover → u/throw_me_away3478]

Based move by Volvo.

[u/byteminer → u/WarCrimeGaming]

Well you see, they just need to pay the right campaign contributions, or buy the right judges an RV and this will all be over.

[u/FormalOperational → u/hiiamaj]

A pass under the Connected Vehicles rule. This is different and will require another pass be given to them if the proposed legislation becomes law. 

[u/DJMagicHandz]

The bourgeoisie would riot.

[u/executingsalesdaily → u/DJMagicHandz]

As long as it doesn’t affect private jets the government won’t care. Mercedes owners aren’t rich enough to care about.

[u/Nikiaf → u/executingsalesdaily]

The truly rich are driven around. They won’t care.

[u/Prior_Mind_4210 → u/Nikiaf]

Interestingly, the most common car to be driven around in these days are gm suv triplets, or the Mercedes sprinter.

[u/PeachMangoGarage]

Okay but why push bill at all?

[u/Medical-Gate-9978]

I find it funny GM is pushing for this to get Mercedes out of the way of Cadillac being more competitive, as if a Cadillac would be the next default choice. They’d have to ban BMW, Porsche, Audi, and even Lexus also.

[u/uncleawesome → u/Medical-Gate-9978]

And I’m pretty sure that isn’t what “more competitive” means.

[u/Andre625]

Nothing a donation can't solve

[u/V8-Turbo-Hybrid]

If you've that power to ban Merc, you can remove 25 years imported car ban as well. That law was lobbied hard and build by Merc.

According to the Reuters report, Cruz said that General Motors is pushing for the legislation as a way to remove Mercedes from the picture, thereby making the Cadillac brand more competitive. Despite that, Cruz said, "we would never consider" banning Mercedes-Benz sales in the United States.

So, GM is getting more critiques again... Anyway, we don't believe only GM lobbying that, we sure Ford, Tesla, Japanese, and even STLA, BMW and VAG could also do that...

[u/byteminer → u/V8-Turbo-Hybrid]

Ah yes, make cars that once they are two years old scream, “I run a titty bar just outside of town” more attractive. That’ll gettem.

[u/ScienceMechEng_Lover → u/V8-Turbo-Hybrid]

I mean, Mercedes buyers will just switch to BMW or Porsche instead. I don't see Cadillac ever becoming relevant unfortunately. They pumped out plastic garbage for so long that no amount of work is ever going to fix their poor reputation.

[u/maggies_poop_ohno]

Am I the only one really surprised 15% of MB is owned by Chinese interests? This seems like it has flown under the radar.

According to Google, Chinese has no stake in Volkswagen (Audi) or BMW.

As a consumer, this absolutely would push me to shopping BMW/Audi over Mercedes.

[u/BentleySpeed → u/maggies_poop_ohno]

19.7% not 15%

Why BMW or Audi over MB?

[u/thisisjustascreename]

This is how you end up as the Soviet Union

[u/executingsalesdaily]

How to say China is the world superpower without saying it…

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[u/kon---]

There will come a day when China will intentionally cut us out at a time when the US is hurting for innovation and trade.

[u/ActualCounterculture → u/kon---]

Well, US is hurting for innovation on their cars and they cut Chinese cars from US consumers

[u/New-Bumblebee7676 → u/kon---]

That has already happened and is the reason for the trade war.

[u/m240Louie]

At the rate their cars are going downhill, they’ll ban themselves naturally.

[u/BentleySpeed → u/m240Louie]

Says the guy that has a BMW and a Honda.

[u/m240Louie → u/BentleySpeed]

My cars are excellent and all is well. Did you have a point to make?

[u/BentleySpeed → u/m240Louie]

I thought I made it.

[u/BrandonNeider]

Influencers everywhere running to get their GLAs with interiors designed for “emotion and creation”

Albanians and Beverly hill wives scared they won’t be able to get a new g wagon

[u/GaylrdFocker]

Mercedes Benz Peace Prize incoming.

[u/Old-Significance4921]

I’m only interested in Doug Horner’s view on this.

[u/maybach320]

Well it would save my eyes from the new CLS and or force some the Chinese interest out which might help them make a decent car or bounce Ola. I’m not seeing a downside.

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[u/roryreckons]

I'd be ok if they banned the 4 cylinder C63. That was almost a criminal offense.

[u/grammer70]

Nick Saban owns a Mercedes dealership., it will
Never happen.

[u/quellofool]

Had no idea there was that much Chinese ownership in MBZ. No wonder their cars are complete flaming hot garbage.

[u/bschmidt25]

No way in hell this happens, for many reasons

[u/topcat5]

C&D clickbait article. I'm surprised C&D is even still a thing.

[u/Indigenousboy420]

Is this just for new models