Mercedes-Benz CEO Slams EU 2035 Combustion Ban, Warns Market Collapse

Mercedes-Benz CEO Ola Källenius has strongly criticized the European Union's plan to ban CO2-emitting vehicles by 2035, calling for a 'reality check' as the policy faces review later this year. He warned that the ban could lead to a collapse of the European car market, as consumers might rush to buy petrol or diesel cars before the ban takes effect, which could ultimately harm automakers struggling with weak demand and competition. Källenius advocates for a technology-neutral approach to decarbonization, emphasizing the need to support the economy and suggesting incentives like tax breaks and reduced electricity prices at charging stations to encourage electric vehicle adoption. Despite the criticism, Mercedes plans to continue offering both electric and combustion engine vehicles, including new V8 engines for its AMG line, reflecting ongoing consumer demand. Other European automakers like Porsche have similarly reconsidered all-electric goals due to weak EV demand, favoring a diverse product lineup. The CEO's stance highlights tensions between ambitious green policies and economic realities in Europe's auto industry.