Mercedes CEO Warns EU: 2035 Combustion Engine Ban Risks Collapse of Car Market

BERLIN – The CEO of Mercedes-Benz, Ola Källenius, has issued a stark warning regarding the European Union’s proposed 2035 ban on new internal combustion engine (ICE) vehicles, urging a full “reality check” on the ambitious policy.

A Dire Forecast for Europe’s Car Industry

Pressed by weak consumer demand, mounting Chinese competition, and sluggish electric vehicle sales, Källenius cautioned that the ban could "collapse" the European car market if enacted as planned. He predicted that many consumers would rush to buy petrol or diesel cars before the deadline, negating the intended environmental benefits of the ban. 

Calls for a Technology-Neutral Transition

As president of the European Automobile Manufacturers’ Association (ACEA), Källenius advocated for a more gradual, technology-neutral approach. Instead of setting a hard cutoff, he proposed incentivizing EV adoption through tax breaks and cheaper public charging infrastructure to strike a balance between decarbonization and economic stability. 

Context and Industry Pressure

The EU’s push to eliminate CO₂-emitting vehicles forms part of its broader climate goals, but the 2035 target is currently under review amid growing industry concern. Mercedes, among others, argues the timeline is unrealistic given existing market and regulatory pressures.

Read More : Mercedes-Benz CEO questions EU's 2035 ban on CO2-emitting vehicles
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