The Alliance for Automotive Innovation, representing the majority of automakers selling vehicles domestically, has sent a letter to congressional leadership requesting a permanent ban on Chinese connected vehicles, hardware and software before the current congressional session concludes on Jan. 3.
CEO John Bozzella stated that while Chinese automakers have not yet significantly entered the domestic market, the organization views the threat as substantial given the scale of subsidized vehicle dumping occurring globally. The automakers requested that lawmakers establish this policy before adjourning and make it permanent law.
The push comes as both the House and Senate pursue bipartisan efforts to address Chinese vehicle imports. The Senate Commerce Committee has advanced legislation that could affect German automaker Mercedes-Benz due to nearly 20% Chinese investor ownership. The Alliance for Automotive Innovation, which includes Mercedes-Benz among its members, stated it seeks to work with lawmakers on a balanced approach that allows all member companies to operate successfully in the United States.
Chinese automakers including BYD and Geely have been expanding their vehicle exports to Europe and Central and South America, undercutting domestic production and pricing. Bozzella characterized a permanent ban as sending a clear bipartisan message that the U.S. government will respond with national security policy to counter China’s strategy to dominate global automotive manufacturing.
The timing coincides with midterm elections scheduled for November, which could influence Congress’ momentum on the issue.
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