Mercedes-Benz could face major restrictions in the United States under a Senate proposal aimed at automakers with significant ownership ties to China. The measure, which moved forward in the Senate Commerce Committee, would target connected vehicles and could prevent some companies from selling those models in the U.S. market.

Sen. Ted Cruz has warned that Mercedes-Benz would be affected if the legislation becomes law. The debate centers on national security concerns tied to connected cars, which rely on software, sensors and data systems that lawmakers say could create risks when companies have close links to China.

The issue has also widened into a broader political fight over the auto industry. According to the report, Cruz has accused General Motors of helping drive the effort, adding another layer of controversy to legislation that already touches trade, technology and foreign investment concerns.

For Mercedes-Benz and other global carmakers, the bill highlights how connected vehicle policy is becoming a flashpoint in Washington. Even before any final vote, the committee action signals tougher scrutiny of ownership structures and technology ties as U.S. lawmakers push for stricter rules on vehicles sold in the American market.