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Four years ago, the head of Mercedes-Benz announced that by the end of this decade it would sell only electric cars. From 2025 onward, all new platforms would support electric power and not gas. The automaker’s CEO said that “the tipping point is getting closer” and that the company needed to be ready to ensure its survival.

Today, that same CEO says that if the EU doesn’t drop its 2035 combustion ban, its auto industry will be “heading at full speed against a wall.” He is now calling for a “technology neutral” approach to emissions reduction, which is code for “let us keep selling gas models.”

Automakers Alone Can’t Sell EV Replacement

Ola Källenius wears two hats. His main job is as CEO of Mercedes-Benz, but he is also the president of the European Automobile Association. Wearing that hat, he lobbies politicians in favor of the interests of all European automakers, not just his own.

Speaking with German newspaper Handelsblatt and wearing that hat, he spoke out against the proposed ban and its challenges. “Our industry is experiencing heavy rain, hail, storms, and snow at the same time. Car manufacturing is a tough business, more so than ever,” he said. He suggests that instead of a ban, the EU should approach decarbonization like China has.

“No one has invested more in electromobility than the European automotive industry,” Källenius said. “Together, we have spent over 250 billion euros and brought hundreds of new electric models to market. Now, politicians must also do everything in their power to improve the conditions for electromobility.” He accused EU countries of doing “far too little” to make charging available.

CEO Wants China-Style EV Adoption

In China, the government has provided a massive network of charging stations and gives big tax breaks to gently nudge buyers into electric cars. In that country, sales of PHEVs and EVs now match the sales of internal combustion. EVs make up more than 61% of that figure. By comparison, in the EU, electric and plug-in hybrids combine for 24% of the market with EVs at 15.6%. Källenius is also concerned that buyers will jump to replace their vehicles with gas cars at the deadline, which he said “doesn’t help the climate at all.”

He said there are other struggles for Benz more specifically. He described the company’s mid-range EV offerings as being inadequate. Going forward, the EVs will be more conventional in the ways customers want, including more traditional styling and a more analog interior.

Källenius spoke out against President Trump’s massive economic disruption. “If the US decides to redefine a global trade order that has existed for decades, it will impact our business,” he said. He also described an “involution” of the market in China. More than 100 automakers are working to sell models there, and Källenius says he expects it to take a few years for the market there to shake out and remove overcapacity and selling of cars below production costs. Benz has the money to wait, he said. Unlike competitors, it won’t slash prices just to move cars.

Source: Handelsblatt