Mercedes' mixed bag: Upbeat Q2 results come as German automaker could face US sales ban

Mercedes-Benz (MBG.DE) reported decent results connected Tuesday, highlighting spot successful its halfway business, but continuing weakness successful China. The study comes arsenic the German automaker's US concern is nether menace of a prohibition owed to ownership stakes by Chinese companies. 

In the 2nd quarter, Mercedes reported rider car gross of 22.99 cardinal euros ($26.18 billion), down 5% compared to a twelvemonth ago, with adjusted EBIT coming successful astatine 909 cardinal euros ($1.035 billion), down 26% twelvemonth implicit year.

But its adjusted instrumentality connected income (similar to EBIT margin) successful the car portion fell somewhat to 4% from a twelvemonth earlier, beating expert expectations per Bloomberg.

Mercedes banal trading successful Germany pulled higher. 

But the bully quality successful its operations comes astatine a tricky clip for Stuttgart-based Mercedes.

Senators Bernie Moreno (R-OH) and Elissa Slotkin's (D-MI) measure to prohibition the merchantability of connected vehicles with Chinese power passed done its committee vote, clearing the way for a afloat legislature vote.

The senators' the measure would prohibit the import, sale, and cognition of vehicles manufactured successful China—or immoderate different state of concern—and prohibition the usage of Chinese-developed connected conveyance technologies, specified arsenic bundle and information systems, connected American roads.

Mercedes shareholding by Chinese entities is astir 20%, crossing the 15% threshold.  China's BAIC Group presently holds 9.98 % of the company's voting rights, making it Mercedes's largest idiosyncratic shareholder. Billionaire Li Shufu, laminitis and Chairman of Geely holds an 9.69% involvement successful Mercedes done his Tenaciou3 Prospect Investment Limited.

If passed, the measure would prohibition conveyance income similar Mercedes connected cars starting successful 2027. 

In a connection to Yahoo Finance, Mercedes defended its structure, noting it wasn't nether immoderate overseas control:

"No shareholder holds much than 10 percent of our stock, and our large shareholders are not straight represented connected the Supervisory Board oregon person immoderate power oregon decision-making authorization erstwhile it comes to the institution and its operations. Those decisions are made solely by the Board of Management of Mercedes-Benz."

The institution added that it is committed to ensuring immoderate caller authorities does not interaction its operations, and it volition proceed to "safeguard" its employees, dealers, suppliers and different workers successful the US. The institution noted it straight and indirectly liable for 160,000 jobs successful the US, has plants successful Alabama and South Carolina, and has invested $1 cardinal annually implicit the past years. 

While determination is simply a agelong mode to spell for this measure to go law, and lawmakers similar Senator Ted Cruz (R-TX) person said this measure should not punish automakers similar Mercedes, the menace is existent for Mercedes, with US income comprising 20% of its planetary total.