The debate over Europe’s automotive future is heating up, and Mercedes-Benz CEO Ola Källenius isn’t holding back. Speaking openly in an interview with German newspaper Handelsblatt, he questioned the European Union’s plan to ban the sale of cars that emit CO₂ by 2035, saying the proposal needs a serious “reality check.” In his view, ignoring the practical challenges could send Europe’s car market “straight into a wall.”
The plan — which would gradually phase out petrol and diesel engines — is seen by supporters as a key step toward cutting emissions and meeting Europe’s climate ambitions. But it’s also set to be reviewed in the second half of 2025, and many in the industry believe the current approach could backfire. Europe’s carmakers are already under pressure from slowing sales, fierce competition from Chinese brands, and the fact that electric vehicle adoption is moving more slowly than hoped.
Källenius warned that the ban could trigger a last-minute rush to buy traditional petrol and diesel cars before the deadline, creating a market shock rather than helping the transition to electric mobility. In his role as president of the European Automobile Manufacturers’ Association (ACEA), he has been pushing for a more balanced, flexible path — one built on attractive tax incentives, lower charging costs, and solutions that make electric cars a natural choice for buyers, not something they feel legally forced into.
“We absolutely need to decarbonize,” he emphasized, “but it must be done in a way that’s open to different technologies and that protects both the planet and the strength of our economy.” His comments add him to the growing list of influential industry leaders calling for a rethink of Europe’s automotive strategy, especially as global market shifts and political changes are rewriting the rules of the game.
