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
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