Following the EU’s proposal to ban CO2-emitting vehicles starting in 2035, Ola Källenius, the CEO of Mercedes-Benz, has called for the target to be reevaluated, as it is up for review this year.
The ban, which supporters say is essential to Europe’s green goals, is scheduled for review in the second half of 2025, with critics arguing it would hinder European carmakers already facing weak demand, Chinese competition, and poor electric vehicle sales.
Källenius, who is currently the head of the European auto lobby ACEA, instead advocated for tax incentives and low-cost power at charging stations to promote the adoption of electric vehicles.
“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.”
“We need a reality check. Otherwise we are heading at full speed against a wall.”
The Mercedes CEO also told German media that tariffs are one of his company’s main difficulties.
“The environment in which we operate is extremely complex at the moment… Car manufacturing is a tough business, now more than ever.”
“Consumer sentiment in the high-end segments important to us has been very subdued for several years, to put it mildly,” Källenius concluded.
Mercedes shares fell slightly in premarket trading following Källenius’ remarks.
By CEO NA Editorial Staff
