A U.S. Senate Commerce Committee-approved bill that would bar automakers from selling vehicles in the United States if they are more than 15% owned by a Chinese entity led Thursday’s automotive headlines. The proposal has drawn attention to Mercedes-Benz, while lawmakers and automakers weighed in on its potential impact.
Senate Committee Advances Bill on Chinese Ownership
A bill prohibiting automakers from selling vehicles in the U.S. if they are more than 15% owned by a Chinese entity was approved by the U.S. Senate Commerce Committee on Wednesday.
The proposal has placed Mercedes-Benz under increased scrutiny because 20% of its investment comes from China. According to one of the bill’s authors, Senator Bernie Moreno, Mercedes would have until 2030 to comply with the measure and could also seek waivers.
Senator Ted Cruz said that General Motors supports the proposal so that Cadillac could potentially gain Mercedes’ market share if the German automaker were forced to leave the U.S. market. General Motors, however, said its support for the legislation is not directed at any specific automaker.
BMW Recalls More Than 318,000 Vehicles in the U.S.
BMW is recalling 318,495 vehicles in the United States because starter motors may overheat and catch fire.
The affected models include the 3 Series, 4 Series, X3, X4, Z4, and the Toyota Supra.
Hyundai Reports Lower Second-Quarter Profit
Hyundai said its global operating profit for the second quarter declined 21% compared with the same period last year.
The automaker also reported that its sales in China fell 33%.
Porsche Expands Workforce Reduction Plan
Porsche announced plans to eliminate another 5,000 jobs in Germany as part of its ongoing cost-cutting efforts.
The additional reductions will bring the company’s total planned workforce cuts to 8,900 positions.
Ford and Geely Announce EV Partnership
Ford has entered into a partnership with Geely that will allow the Chinese automaker to use part of Ford’s dormant production capacity at its plant in Valencia, Spain.
Under the agreement, the two companies will jointly develop electric vehicles.
Aston Martin Secures New Financing
Aston Martin has secured £550 million ($736 million) in debt financing from HPS Investment Partners.
The company’s shares rose more than 9% in London following the financing announcement, rounding out a day marked by significant developments across the global automotive industry.
