Mercedes CEO Warns Europe's Car Industry Could Collapse: 'We Need a Reality Check'
Unless the EU changes its mind, automakers are heading 'full speed against a wall.'
Only a few years ago, Mercedes-Benz was confident about going all-in on electric vehicles in Europe. In 2021, it projected that by the end of the decade, it would stop selling cars with combustion engines "where market conditions allow." Not only has the luxury brand dropped this ambitious goal, but it has also taken a 180-degree turn. Without ICE vehicles, the company’s head honcho believes the local automotive industry will "collapse."
In an interview with the German business newspaper Handelsblatt (subscription required), Ola Källenius warned that if the EU’s sales ban on new combustion-engine cars remains in place for 2035, Europe’s automotive industry will implode:
The Mercedes boss, who is also president of the European Automobile Manufacturers’ Association (ACEA), cautions that the continent’s car industry will “collapse” if the EU doesn’t drop the ban. Before regulators outlaw new ICE vehicles, Källenius predicts customers will rush to buy gas and diesel cars ahead of the deadline, set to take effect in nine and a half years, which “doesn’t help the climate at all.”