Mercedes CEO Warns Europe: 2035 Gas Engine Ban Could Collapse Auto Industry

Mercedes CEO's Warning

• ⚠️ Ola Källenius, CEO of Mercedes and President of ACEA, warns that the EU's rigid 2035 combustion engine ban could lead to the collapse of Europe's car industry.
• 💡 He believes the EU is heading "at full speed against a wall" if it sticks to the plan, urging a reality check on current regulations and targets.
• 📝 Källenius, supported by Matthias Zink, sent an open letter to Ursula von der Leyen, advocating for a more flexible and realistic path to decarbonization.

Feasibility and Regulatory Impact

• 🎯 Achieving 0 grams of CO2 per kilometer in just nine years is deemed "simply no longer feasible" by industry leaders.
• 📈 Regulatory compliance already consumes 25% of Stellantis' engineering hours, diverting resources from actual product development.
• 📆 The EU has set increasingly strict CO2 targets, aiming for 93.6 g/km by 2025-2029, 49.5 g/km by 2030-2034, and ultimately 0 g/km from 2035.

Industry Divisions and Future Outlook

• 🔄 Not all automakers share the same view; Kia, for instance, sees maintaining gasoline vehicles as costly and is committed to its large EV lineup.
• 🗓️ A Strategic Dialogue on September 12th presents a "last chance" for Europe to adjust course, potentially delaying the ban and offering automakers a more manageable transition.
• 🌍 The ban's implications extend globally, potentially reshaping vehicle design, production planning, and the availability of gas-powered models worldwide.