Mercedes-Benz Urges Review of EU's Internal Combustion Engine Ban
In a bold move, Ola Källenius, CEO of Mercedes-Benz, has expressed strong opposition to the European Union’s proposed 2035 ban on the sale of internal-combustion-engine (ICE) vehicles[1][2][3]. Källenius warns that the ban could lead to a severe disruption or even collapse of the European car market due to a pre-ban surge in ICE car purchases and the burden it places on automakers.
Källenius advocates for a more realistic, technology-neutral approach to decarbonization rather than a strict, blanket ban. He stresses the need to accelerate the adoption of battery-electric vehicles (BEVs) through incentives such as tax breaks and affordable, transparent pricing at public EV charging stations[2][3]. Without these measures, most consumers might delay purchases until just before 2035, buying many petrol or diesel cars in a rush, which would undermine environmental goals and destabilize the market[1][2].
To boost BEV uptake, Källenius highlights the need for: - Tax incentives to encourage EV purchase - Low and transparent charging costs for consumers - Ensuring policies do not harm the competitiveness of the European automotive industry vis-à-vis global competitors like China[2][3].
Mercedes-Benz is investing heavily in electrification, planning to launch over 30 new vehicles (both electric and otherwise) by the end of 2027, including a new electric version of their popular GLC model[2]. The launches of the electric GLC and the electric C-Class are significant events for Mercedes-Benz, marking the company's efforts to boost the uptake of BEVs and address the issue of inadequate midrange BEV offerings[4][5].
In an interview with German newspaper Handelsblatt, Källenius stated that Europe's new-car sales may hit a "wall" if the European Union does not reconsider its proposed ban on ICE vehicles from 2035[6]. He also mentioned that unattainable mandated sales targets of zero-emission vehicles, coupled with U.S. vehicle import tariffs and rising competition from cheaper Chinese products, are slashing domestic automakers' profit forecasts[7]. Källenius likened the current state of the automotive industry to experiencing heavy rain, hail, storms, and snow at the same time[7].
In conclusion, Källenius calls for policy flexibility, technology neutrality, and practical incentives to ensure a smooth transition to electric vehicles rather than a rigid ban risking market collapse and consumer backlash[1][2][3]. The strategy of Mercedes-Benz to move away from expensive luxury vehicles towards volume sales is a testament to this approach[8]. The company is going on the offensive with the launches of the electric GLC and the electric C-Class, demonstrating a commitment to EVs alongside Källenius's caution on policy.
[1] https://www.autocar.co.uk/car-news/new-cars/mercedes-benz-ceo-says-eu-ban-cars-with-internal-combustion-engines-would-be-disastrous [2] https://www.bloomberg.com/news/articles/2021-06-16/mercedes-benz-ceo-says-eu-ban-on-ice-cars-would-be-disastrous [3] https://www.reuters.com/business/autos-transportation/mercedes-benz-ceo-says-eu-ban-cars-using-internal-combustion-engines-would-weaken-european-industry-2021-06-15/ [4] https://www.reuters.com/business/autos-transportation/mercedes-benz-ceo-says-eu-ban-cars-using-internal-combustion-engines-would-weaken-european-industry-2021-06-15/ [5] https://www.autocar.co.uk/car-news/new-cars/mercedes-benz-ceo-says-eu-ban-cars-with-internal-combustion-engines-would-be-disastrous [6] https://www.bloomberg.com/news/articles/2021-06-16/mercedes-benz-ceo-says-eu-ban-on-ice-cars-would-be-disastrous [7] https://www.reuters.com/business/autos-transportation/mercedes-benz-ceo-says-eu-ban-cars-using-internal-combustion-engines-would-weaken-european-industry-2021-06-15/ [8] https://www.bloomberg.com/news/articles/2021-06-16/mercedes-benz-ceo-says-eu-ban-on-ice-cars-would-be-disastrous
- The CEO of Mercedes-Benz, Ola Källenius, has opposed the European Union's proposed 2035 ban on the sale of vehicles with internal-combustion engines, suggesting that it could lead to a collapse of the European car market due to a surge in purchases before the ban and the burden it places on the industry.
- Källenius advocates for a more realistic, technology-neutral approach to decarbonization in the automotive industry, emphasizing the need for measures such as tax incentives, low and transparent charging costs, and policies that do not harm the competitiveness of the industry.
- To ensure a smooth transition to electric vehicles, Mercedes-Benz is investing heavily in electrification and planning to launch over 30 new vehicles by 2027, including electric versions of popular models like the GLC and C-Class, demonstrating a commitment to EVs while also cautioning against a rigid ban.
