- Mercedes’ boss says the EU should not set a date on the phase-out of ICE cars.
- Ola Källenius thinks buyers should be incentivised to switch to electric vehicles.
- He suggests better charging infrastructure, cheap electricity, and tax breaks.
Less than a month from now, Mercedes CEO will reveal the company’s new GLC EV at the Munich IAA and tell the world how this fast, long-range SUV with the retro-futuristic illuminated Benz grille will drive the three-pointed star into the 2030s. But separately, Ola Källenius is calling for an urgent rethink on EU legislation that will force buyers and carmakers to go electric by the middle of that decade.
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Related: EU May Quietly Ban Gas Rentals Starting In 2030
“We need to do a reality check,” Källenius told Germany’s Handelsblatt newspaper, referring to the EU rules that will effectively outlaw combustion-powered cars from 2035. “Otherwise, we’ll be driving full speed into the wall.”
Concerns over market readiness
Källenius is concerned that the European car market could collapse if lawmakers force EVs on buyers who aren’t ready for them. He believes customers will rush to buy the last remaining petrol and diesel cars in the years running up to the 2035 cut-off, and claims there are better ways to clean up the continent’s air without threatening entire nations’ economies.
“Of course, we have to decarbonize,” Källenius said, “but it has to be done in a technology-neutral way. We mustn’t lose sight of our economy. I wouldn’t set a specific date for the phase-out of combustion engine technology. An absolute target at a fixed time with draconian penalties won’t help.”
Incentives over bans
Instead, the 56-year-old German suggests more needs to be done to persuade buyers to make the shift of their own accord.
“Look at China. There, there’s no end date on this issue, no ban on any technology,” he told Handelsblatt. “Instead, low prices at charging stations and tax breaks provide strong incentives to buy all-electric cars. At the same time, however, unlike in Europe, various hybrid versions and combustion engines are permitted.”
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Industry pushback grows
Källenius is pushing for a 2035 rethink not only as CEO of Mercedes, but in his new role as president of the European Automobile Industry Association (ACEA). And he’s not the only senior industry figure calling for the combustion ban to be overturned. Last year, BMW CEO Oliver Zipse declared the 2035 cutoff “unrealistic,” warning that it could increase European automaker reliance on Chinese batteries.
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