Berlin (Brussels Morning Newspaper) – Ola Kaellenius, CEO of Mercedes-Benz, voiced his opposition to the European Union’s 2035 plan to ban vehicles driven by CO2 emissions during a media interview on Monday.
According to reports, the European Union‘s plan to restrict the sale of new combustion engine cars could be delayed until the second half of 2025 as political opposition and industry opposition grow to the plan.
Why did the CEO of Mercedes criticise the EU’s plan?
“We need a reality check. Otherwise, we are heading at full speed against a wall,”
Mercedes CEO Ola Källenius mentioned in Handelsblatt business daily that the 2035 target might lead Europe’s car market to “collapse” if it proceeds.
He contended that consumers would rush to purchase cars with petrol or diesel engines before the ban takes effect. The German auto industry leader, who is currently head of the European auto lobby ACEA, has instead advocated for tax incentives and low-cost electricity at charging stations to promote the switch to electric vehicles.
“Of course we have to decarbonise, but it has to be done in a technology-neutral way. We must not lose sight of our economy,”
Kaellenius stated.
Will EU review change the fate of the 2035 ban?
The ban, which supporters argue is essential to reach the EU’s green ambitions, will be reviewed in the second half of 2025. As reported, supporters think the ban is important as well to facilitate Europe’s shift to zero-emission vehicles and is a significant regulation towards reaching the EU climate objectives for Europe, and ultimately, carbon neutrality by 2050.
Supporters believe a continuation of the ban will boost the development of and investment in the fully battery electric and hydrogen vehicles that will be required to reduce urban air pollution and greenhouse gas emissions significantly.
What risks do critics see in the combustion car ban?
In March 2025, the largest legislative group in the European Parliament indicated they would attempt to reverse the EU’s main climate policy for auto transportation—the 2035 ban on new vehicle sales with CO2 emissions—during this year’s review.
The political and industrial groups, such as the European People’s Party, member states such as Germany, Italy, and Poland, are pushing for a more neutral and technology-agnostic policy because they are concerned that the implementation of the ban prematurely could risk competitiveness and commercial viability of the European auto sector.
