Mercedes CEO Urges EU to Reassess 2035 ICE Ban Amid Industry Concerns

Mercedes-Benz CEO Ola Källenius has publicly criticized the European Union’s plan to ban CO2-emitting vehicles by 2035, calling for a reassessment of the timeline. He warned that the accelerated transition could harm the European automotive industry, which is already grappling with weak demand, rising production costs, and fierce competition from Chinese manufacturers [1]. Källenius urged policymakers to adopt a “reality check” and consider a more gradual approach, emphasizing the need for a technology-neutral strategy that supports both electric and traditional vehicles during the transition [1].

The CEO highlighted the risks of an abrupt phaseout, noting that consumer behavior could shift toward purchasing internal combustion engine vehicles ahead of the 2035 deadline, potentially undermining the intended goal of reducing emissions [1]. He also called for targeted incentives such as tax breaks and affordable electricity at charging stations to encourage voluntary adoption of EVs without imposing an unrealistic mandate [1].

In contrast to Europe’s aggressive timeline, the U.S. is taking a more phased and supportive approach. Despite objections from the Trump administration, the National Electric Vehicle Infrastructure program—part of the 2021 bipartisan infrastructure law—remains active, providing $5 billion in funding for EV charging infrastructure through 2026. Recent guidance from the Federal Highway Administration has simplified access to these funds and removed some earlier mandates, such as the requirement for charger access in disadvantaged communities and the promotion of union labor [1]. This move comes after a federal court blocked an earlier attempt to suspend the program, citing a lack of legal authority.

The U.S. strategy, which includes federal tax credits and infrastructure investments, has created a more conducive environment for automakers to scale up EV production and innovation [1]. In comparison, European automakers face a less favorable ecosystem, with higher production costs and a less developed charging network. Källenius’s comments reflect broader industry concerns about the EU’s ability to maintain its competitive edge in the global EV market without sufficient support.

While the EU has defended its 2035 timeline as essential for meeting its climate goals, Källenius and others argue that the economic risks of a premature transition are too high. The automotive sector, which represents a significant portion of Europe’s industrial base, could suffer if the shift to EVs is not carefully managed. Without adequate infrastructure and financial support, European automakers risk losing ground to rivals in Asia and North America [1].

The debate over the pace of the EV transition is not just about environmental policy—it is a strategic question with wide-ranging implications for the global automotive industry. As the EU and U.S. continue to refine their approaches, the ability to balance sustainability with economic viability will be crucial in determining the future of the sector [1].

Source:

[1] https://www.cryptopolitan.com/mercedes-ceo-warns-europe-against-ev-push/

[2] http://www.msn.com/en-us/money/other/bmw-mercedes-dodge-trade-shock-with-4-billion-tariff-reprieve/ar-AA1Jq4r3?apiversion=v2&batchservertelemetry=1&domshim=1&noservercache=1&noservertelemetry=1&renderwebcomponents=1&wcseo=1