Mercedes-Benz CEO Ola Kaellenius has expressed criticism of the European Union’s plan to ban the sale of new CO2-emitting vehicles from 2035, describing the target as potentially damaging to the automotive industry and calling for a more technology-neutral approach. His remarks come amid growing debate as the EU’s policy is scheduled for review later this year.
“We need a reality check. Otherwise we are heading at full speed against a wall,” Kaellenius told the Handelsblatt business daily on Monday. He warned that Europe’s car market could “collapse” if the ban proceeds as planned, and suggested that consumers might rush to purchase petrol or diesel vehicles before the deadline.
Currently serving as head of the European Automobile Manufacturers Association (ACEA), Kaellenius advocated for alternative measures to promote electric vehicle adoption, including tax incentives and affordable electricity prices at charging stations.
“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,” he said, emphasizing the need to balance environmental goals with economic realities amid challenges such as weak demand, competition from China, and slower-than-expected EV sales.