US Automakers Press Congress for Permanent Ban on Chinese Connected Vehicles

DETROIT — A coalition representing the majority of automakers selling vehicles in the United States is intensifying its campaign for Congress to permanently prohibit the sale, import, and manufacture of Chinese connected vehicles, along with their associated hardware and software.

In a letter addressed to congressional leadership on Thursday, the Alliance for Automotive Innovation called for immediate action before the current session concludes on January 3. John Bozzella, the alliance’s CEO, highlighted the urgency of the situation, stating that Chinese manufacturers are currently subsidizing and distributing connected vehicles with integrated software globally.

“This hasn’t happened inside the U.S. yet, but given the scale and urgency of this threat, we urge you to enact a Chinese vehicle, software and hardware ban before adjourning this year and make this policy the law of the land,” Bozzella wrote, according to a version seen by CNBC.

The push comes as midterm elections in November could alter the political landscape and potentially slow legislative momentum. Both the House and Senate are currently engaging in bipartisan efforts to address the growing presence of Chinese automotive technology.

These legislative moves include proposals advanced by the Senate Commerce Committee that could restrict access to the U.S. market for companies with significant Chinese investment. Such measures could impact Mercedes-Benz, which has nearly 20% Chinese ownership, and is a member of the Alliance for Automotive Innovation.

Despite these concerns, the alliance emphasized its desire to collaborate with lawmakers to establish a “balanced policy” that ensures all member companies can continue to operate successfully within the United States.

Automakers have expressed increasing alarm over competitors such as BYD and Geely, which are reportedly flooding international markets with heavily discounted vehicles, thereby threatening domestic production capabilities. These Chinese firms have been expanding their export volumes into Europe as well as Central and South America.

Bozzella asserted that passing a permanent ban during the 119th Congress would demonstrate a unified, bipartisan commitment to countering China’s strategy to dominate global automotive manufacturing through national security-oriented policies.