The Senate Commerce, Science, and Transportation Committee unanimously advanced the Connected Vehicle Security Act of 2026 on July 30th, a bipartisan bill that would prohibit vehicles and related software or hardware "linked to China or other foreign adversaries" from being imported, sold, or manufactured in the United States.

The legislation sets a threshold banning manufacturers with more than 15 percent ownership by China or other adversaries. This provision could affect German luxury automaker Mercedes-Benz, which has two Chinese shareholders—one state-owned—with stakes under 10 percent each. If barred, Mercedes-Benz's U.S. sales and its Alabama plant employing 5,800 workers would be impacted.

Bill cosponsor Elissa Slotkin (D–Mich.) described Chinese cars as "surveillance packages on wheels, with the ability to collect on American citizens and transmit that data back to Beijing." She accused the Chinese Communist Party of "subsidizing their product and underselling the competition," harming "Michigan's auto industry and millions of American workers." United Auto Workers (UAW) President Shawn Fain supported the bill, calling for an end to "offshoring and outsourcing our auto industry" and advocating for more "affordable, high-quality vehicles for the American consumer, built by UAW autoworkers."

However, Senator Ted Cruz noted during the committee hearing that the bill "goes beyond the national security link this legislation is intended to address," suggesting it may be motivated more by protectionism. Additionally, reports indicate the bill may be influenced by General Motors to weaken competition from Mercedes-Benz, particularly regarding unionization efforts at Mercedes' Alabama plant.

Researchers flagged 13 software vulnerabilities in Mercedes-Benz vehicles in 2025, adding to concerns about vehicle security.

Currently, tariffs and regulations have effectively banned Chinese cars from the U.S. market, but this bill would extend restrictions to manufacturers with significant Chinese ownership.

Sources