Mercedes Is Asking For A 'Reality Check'
Mercedes-Benz CEO Ola Källenius spoke in strong words about the European Union’s planned ban on new combustion vehicles from 2035.
Key Points
- Mercedes-Benz CEO Ola Källenius warns the EU’s 2035 ban on CO₂-emitting vehicles could cause a market collapse if implemented without changes.
- Calls for incentives and lower charging costs to encourage EV adoption instead of an outright ban.
- Urges a technology-neutral approach to decarbonization to protect both the environment and Europe’s auto industry.
The executive is warning that Europe's policy could severely damage the car industry in the old world if it goes ahead unchanged. In an interview with Germany’s Handelsblatt newspaper, Källenius said the proposal—currently due for review in the second half of 2025—needs a “reality check” to avoid what he described as “heading at full speed against a wall.”
While supporters see the ban as fundamental to Europe’s climate goals, critics—and automakers—argue that it risks kneecapping an already strained automotive sector facing weak demand, rapidly increasing prices, huge capital outflows, slowing EV sales, and fierce competition from China.
Källenius, who also serves as president of the European Automobile Manufacturers’ Association (ACEA), suggested that the market could “collapse” if the regulation is implemented without adjustments, as buyers could pull their consumption forward and rush to purchase gasoline and diesel models before the deadline, and then really only subsequently participate in the used market.
Instead of an outright ban, Källenius is asking for subsidization policies that make electric vehicles more attractive to consumers, including tax incentives and reduced charging costs—which is basically what we already have. "Of course, we have to decarbonise, but it has to be done in a technology-neutral way. We must not lose sight of our economy," Kaellenius said.
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An experienced automotive storyteller and accomplished photographer known for engaging and insightful content. Michael also brings a wealth of technical knowledge—he was part of the Ford GT program at Multimatic, oversaw a fleet of Audi TCR race cars, ziptied Lamborghini Super Trofeo cars back together, been over the wall during the Rolex 24, and worked in the intense world of IndyCar.
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"I can tactilely find it in the same place it always is in my 'E" Amen!
On a funny note. I used to drive a '68 Mustang, and I usually wore the separate shoulder belt while on the highway. That led to a problem. The '68 belt's don't have tensioners, so for them to work they have to be comfortably snug, which means if you're a short guy, you can no longer reach anything on the dash.
On a long drive you might start out warm, but as the day goes on you might want some heat in the car, but yah can't have it without pulling over and undoing the belts to reach the controls.
Solved the problem by taking my left shoe off and running the heater controls on the left of the dash with my toes. Worked in the dark too!
Mercedes pretty much lost the plot after 2018. I would not buy any car past that year. We will be keeping our 2017 GLC43 and 2014 ML63 for as long as we can. They are both fantastic cars. New cars have no soul.