FRANKFURT (dpa-AFX Broker) - Shares in Mercedes-Benz reacted with moderate losses on Monday to a legislative proposal in the US that could culminate in a sales ban in this key market. Following the opening bell, the carmaker's stock fell by up to 1.2 percent. By approximately 9:30 a.m., the shares remained down by nearly 0.7 percent.
A bill that has passed a US House of Representatives committee proposes a ban on the production and sale of vehicles in the US whose manufacturers are at least 15 percent owned by foreign 'US adversaries', including China.
Nearly 10 percent of Mercedes shares are held by the Chinese state-controlled automotive group BAIC. A further nearly ten percent is attributed to Li Shufu, the owner of the Geely automotive group. The US market is the second largest automotive market in the world; furthermore, Mercedes operates a major plant in Tuscaloosa, Alabama, which builds the lucrative Mercedes SUV models GLE and GLS, among others.
The bill is far from becoming law and is likely to undergo amendments, but it could at least weigh on market sentiment, a trader commented this morning./edh/men/stk
