Mercedes-Benz CEO Pledges to Protect US Business, Invests Over $70 Billion Amid China Shareholder Concerns

The US Senate Commerce Committee last week passed legislation aimed at tightening restrictions on Chinese automakers entering the US market. During the release of second-quarter results, Källenius stated that if adjustments are needed to comply with any regulations, the company will ensure it protects its business and presence in the US. He said the company is not naive about the geopolitical environment and competition between the US and China, and is closely monitoring relevant discussions in the US while being "deeply engaged" in negotiations with all parties involved.

Chinese automaker BAIC and Geely founder Li Shufu together hold nearly 20% of Mercedes' listed shares. In the Chinese market, Mercedes and its German peers have fallen behind in the rapid transition to electric vehicles, leading to a significant drop in sales. Meanwhile, demand for traditional internal combustion engine vehicles remains strong in the US, and Mercedes is strengthening its local production there. Amid pressure from the Trump administration's tariff threats against foreign companies, Mercedes has committed to investing over $70 billion in its US operations, including $40 billion by 2030 to expand SUV production at its Alabama plant.

In the first half of this year, Mercedes' US sales rose 15%, partially offsetting the decline in the Chinese market. Additionally, the profitable internal combustion engine vehicles sold in the US generate higher margins compared to the more expensive electric vehicles.