Mercedes CEO calls on EU to rethink 2035 gasoline car ban

The Mercedes CEO is sounding the alarm over the 2035 gasoline car ban, warning that Europe’s car industry is on a dangerous path.

Ola Källenius, who also heads the European Automobile Manufacturers’ Association (ACEA), says the European Union needs a serious ‘reality check.’

In a recent interview, he even suggested the industry could ‘collapse’ if leaders didn’t rethink the plan.

Now, he’s taken his concerns directly to EU Commission President Ursula von der Leyen in an open letter.

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Mercedes CEO says going all-in on EVs was a mistake

At the center of the debate is the 2035 gasoline car ban, which will effectively leave only electric vehicles in the market.

Källenius believes it’s unrealistic to expect such a dramatic shift in less than a decade.

In his letter, co-signed by Matthias Zink of the European Association of Automotive Suppliers, he said the strict timeline simply ‘isn’t feasible.’

He argued Europe could still reach its long-term climate goals, but banning gas cars so quickly would do more harm than good.

The Mercedes CEO previously admitted that going all-in on electric cars was a mistake, and he’s not alone.

Audi, for example, has already begun reassessing their all-electric plans, believing that it may take some time for the demand for gas cars to die down.

However, not everyone agrees. Kia, for example, says dropping the ban would be a disaster for them.

After all, the brand has invested heavily in electric cars, with its new KIA EV6 GT holding its own against a Ferrari Purosangue in a drag race.

With dozens of new models in the pipeline, Kia’s European boss Marc Hedrich said that slowing down now would ‘cost a fortune’.

If Europe won’t produce EVs, someone else might

The EU hasn’t budged on the 2035 gasoline car ban, but it has given carmakers a little breathing room.

Companies now have a few extra years to hit certain emissions goals, but the direction is still clear: tighter and tighter limits leading to zero-emission sales by 2035.

For automakers already struggling with high costs and complex regulations, the pressure is intense.

Stellantis, one of Europe’s largest car groups, even admitted that one in four engineering hours is spent just on meeting rules rather than creating new cars.

What happens next could reshape the global car market.

Europe is one of the biggest regions for new car sales, and if it goes fully electric in 2035, the ripple effects will be felt worldwide.

While European heavyweights like Mercedes are hesitant to bet on EVs, their foreign competitors don’t seem to share that sentiment.

Chinese automaker BYD recently increased its Europe market share by 158 percent, on the back of huge shipments of EVs to the continent.

If European carmakers are not ready to go all-in on EVs, perhaps someone else will.

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