'Mercedes Chief Warns: "We'll Be Heading Straight Into a Wall" Regarding Europe’s EV Future' | Carscoops

      Ola Källenius is urging the EU to reconsider its 2035 combustion engine ban, highlighting potential economic dangers and advocating for incentives rather than strict deadlines.

      The Mercedes CEO believes that the EU should avoid setting a firm deadline for phasing out internal combustion engine vehicles, suggesting instead that purchasers should be encouraged to transition to electric cars. He recommends improvements in charging infrastructure, lower electricity costs, and tax incentives.

      In less than a month, Källenius will introduce Mercedes’ new GLC EV at the Munich IAA, showcasing this fast, long-range SUV with its distinctive illuminated Benz grille, which he asserts will guide the brand into the 2030s. However, he is simultaneously calling for a critical reassessment of EU regulations that would mandate a shift to electric vehicles by the middle of that decade.

      “We need to conduct a reality check,” Källenius stated to Germany’s Handelsblatt, referencing the EU rules that would essentially ban combustion-powered vehicles starting in 2035. “If not, we will be heading straight for disaster.”

      Market readiness concerns

      He worries that the European car market could face a crisis if lawmakers compel consumers to adopt electric vehicles prematurely. Källenius anticipates a rush to purchase the last remaining petrol and diesel models as the 2035 deadline approaches, arguing that there are more effective ways to improve air quality without jeopardizing national economies.

      “Decarbonization is essential,” Källenius acknowledged, “but it should be approached in a technology-neutral manner. We cannot ignore our economic stability. I wouldn’t establish a specific date to phase out combustion engine technology. An absolute target with severe penalties will not be beneficial.”

      Incentives over bans

      Instead, Källenius, aged 56, suggests that more should be done to encourage consumers to voluntarily switch to electric vehicles.

      “Look at China. There’s no deadline or ban on any technology there,” he remarked to Handelsblatt. “Instead, competitive pricing at charging stations and tax incentives effectively encourage the purchase of all-electric cars. Meanwhile, various hybrid models and combustion engines are still allowed, unlike in Europe.”

      Growing industry opposition

      Källenius is advocating for a reconsideration of the 2035 ban, not only as the CEO of Mercedes but also in his new capacity as president of the European Automobile Industry Association (ACEA). He is joined by other prominent industry leaders in calling for the combustion ban to be revoked. Last year, BMW CEO Oliver Zipse deemed the 2035 deadline "unrealistic," cautioning that it could make European manufacturers more dependent on Chinese battery production.