APR news is continuing to follow progress of a bill in Congress that could impact the Mercedes Benz plant here in Alabama. The Motor Vehicle Modernization Act of 2026 would ban the manufacture and sale of cars in the U.S. if those companies are foreign owned. China reportedly owns twenty percent of Mercedes. Auto analyst Roger Lanctot is watching the measure at the website Connected Mobility. He says legislation like this could make life tough for the industry here in the U.S.
“I would not want to be an auto industry executive right now, because you almost can't do any long-term planning, which the industry has to do, because of different, you know, executive orders and legislative actions that are disrupting, disrupting the industry,” he said.
Lanctot is referring to a bill making its way through Congress called the Automobile Modernization Act of 2026.U.S. House member Brett Guthrie, R-Ky. introduced the measure back in February. The act would impose restrictions on automakers that are owned by countries considered foreign adversaries, such as China, Russia, or North Korea. The website of Mercedes Benz says twenty percent of the European automaker is owned by two investors from China. That could put the car company, and its North American plant near Tuscaloosa, at risk.
The Mercedes plant is a significant contributor to the economy of the state. The Alabama Department of Revenue estimates the plant generates about $1.5 billion annually for the state’s economy. The manufacturer is also responsible for infusing $7 billion into the economy of the state of Alabama.
The change in government policies makes it challenging for companies to plan, said Roger Lanctot of automotive consulting firm Strategy Now Consulting.
“If I was an auto industry executive, I wouldn't want to be in this position right now,” Lanctot said.
“You can't make long term plans as the industry has to make because of different, you know, executive orders and legislative actions that are disrupting, disrupting the industry,” he said.
Restrictions that are proposed on automakers that have foreign-adversary government ownership could impact Mercedes-Benz's ability to produce or sell cars in the U.S., CNBC reported. The company's shareholder disclosure reveals that BAIC Group has a stake of 9.98% of the company, and investor Li Shufu owns 9.69% of the company, making nearly 20% of the shares.
Lanctot wondered if there were any restrictions that would be good for Alabama.
It is not in the best interests of consumers or working people who work in the plants in Alabama, he said, “I don’t think it’s fundamentally.”
APR News reached out to Guthrie's office and Mercedes-Benz, but both failed to respond to our inquiries. However, published reports say the European automaker is in talks with lawmakers and policymakers on Capitol Hill.
But automotive analyst Lauren Fix says the worries include where drivers can drop off their vehicles for repairs. Restrictions on access to the technical information will help make it more difficult for independent shops to compete with the dealerships, said Buffalo, New York-based Fix, who is an author and podcaster.
“People become upset when they are told where their cars need to go for repair, they don't,” Fix said.
During the interview, Fix said she was at her favorite repair shop.
“I mean, I'm just driving into my favorite repair shop and they just put tires on my car, I want to be able to go wherever I want,” she said.
Manufacturers have a motive to encourage customers to come back to dealerships for service and repair, and it's one that has money flowing in the other direction. Fix said the restriction of independent shops' access to technical information may be able to help to drive more business towards independent dealers.
However, even though she was worried, Fix warned against taking for granted that the bid would bring job cuts to Mercedes-Benz's Alabama facility. The company's ability to deliver cars that are customers' preferences would continue to be crucial.
“If they sell cars people want at the price people want, with all the options and features people want, they will continue to make cars that are quality,” Fix said.
As car-making expands throughout the U.S., more states are invested in the industry's future, Lanctot said.
The positive side is, “Many, many more states have a vested interest in the automotive industry,” he said.
He stated that federal policy needs to facilitate that growth.
“I think that's the goal here, to build on that strength and progress and I don't think — I don't think this legislation is going to be useful in that regard,” Lanctot said.
The bill has been stuck in committee for months. It’s not known if a new Congress will put the legislation on a faster track to passage, or not.
