The Mersu boss warns of the EU’s plan – “Could collapse the car market”

Mercedes Benz managing director Ola Källenius says that the EU’s 90 percent electric car target could collapse the car market.

The European Commission proposed in December that 90 percent of new cars sold from 2035 would be emission-free. In this way, the EU would be softening the previously planned complete ban on combustion engines.

However, the remaining ten percent should be compensated by, for example, the use of low-carbon steel and synthetic or renewable fuels.

“The 90 percent goal must not turn into a hidden hundred percent,” Källenius said last week while speaking to reporters in Brussels.

Källenius is also a member of the European Automobile Manufacturers Association THAT: n chairman, so he also speaks for the entire automotive industry. Car manufacturers’ criticism of EU regulation has intensified, because according to the industry, the rapid reduction of carbon dioxide emissions weakens the industry’s financial position.

Källenius doubts that, even if relaxed, the internal combustion engine ban can actually lead to a complete ban. Källenius urges the EU to think about the plan.

In the Commission’s proposal, seven percent of emissions could be offset by the use of low-carbon steel and three percent by alternative fuels.

“I know the green steel market and I know how unrealistic those expectations are,” said Källenius.

If implemented, the proposals could, according to Källenius, distort the market for new cars and collapse their demand.

According to Källenius, the decision-makers should consider actions that target the current 250 million vehicles in the EU region.

According to him, even a small increase in the use of synthetic fuels in the current car fleet could be significant in terms of the climate.

He also demands more time for car manufacturers to reach the stricter carbon dioxide limits.

According to Källenius, the discussion is not about whether carbon dioxide emissions should be reduced and cars should be electrified, but about how to achieve the goals.

The Mercedes manager said he supports the EU “made in Europe” initiative. Its goal is to strengthen investments in, for example, the automotive industry.

However, he warned that the latest draft presented by the Commission at the beginning of March is very complex.