Mercedes-Benz faces US sales ban

German car manufacturer Mercedes-Benz could be banned from selling its vehicles in the US after a US Senate committee passed a bill on Wednesday.

The draft legislation proposes a ban on the import, production, sale, and resale of vehicles from manufacturers in which Chinese shareholders hold more than 15%. 

Just under 10% of Mercedes is held by the Chinese automaker BAIC, with another almost 10% held by the manufacturer's founder, Li Shufu. 

Passed by the Senate commerce committee, the draft bill now requires approval by the full Senate.

Texas Republican Ted Cruz, who chairs the committees, called for the 15% threshold to be removed. He questioned whether the figure had been chosen to weaken Mercedes, the German rival of US manufacturer General Motors.

Mercedes highlighted its presence in the country, with 160,000 jobs across the US, producing vehicles in Tuscaloosa, Alabama and Charleston, South Carolina and working with 386 dealer partners in 49 states. 

It said no single shareholder held more than 10% of stock and that major shareholders were not directly represented on the supervisory board or had any control or decision-making authority.

"The brand’s strong presence in the United States dates back to 1888, and with 5 million cars and vans on the road today – and more than 5 million SUVs and almost 500,000 vans assembled in the country to date, American customers have consistently demonstrated that Mercedes-Benz is one of the country’s most loved brands," the company said.