Mercedes CEO Says We Need A Reality Check Over Combustion Bans
Mercedes Is Concerned About Combustion Restrictions
Mercedes, like most other automakers, had once committed to going all-electric by the end of this decade, but weak demand for EVs has forced the company to rethink those targets. Now, Mercedes-Benz CEO Ola Källenius said that even Europe's planned 2035 combustion ban is too ambitious, reports Reuters. "We need a reality check. Otherwise, we are heading at full speed against a wall," the CEO told German newspaper Handelsblatt, adding that Europe's car market could "collapse" if the ban is approved after its review later this year.
Käallenius Wants A Different Approach
This comes after Mercedes-AMG revealed plans to develop a new V8 engine that has no defined "natural end date," citing customer demand for more combustion-powered products. Regular, non-AMG Mercedes products will also have a gas option for a long time to come. "Of course, we have to decarbonize, but it has to be done in a technology-neutral way," Källenius said. "We must not lose sight of our economy." This mirrors earlier comments made by the CEO, after he said in June that he believes "the most rational approach in the current situation is for an established manufacturer to do both [EV and gas] and not neglect one technology." Porsche has also walked back plans for going all-electric, thanks to weak demand, and like Mercedes, it sees a varied product offering as key to sustained sales.
Essentially, Mercedes and other automakers in Europe are happy to continue developing EVs for those who want them, but they believe that while a ban on combustion cars would lead to a sharp rise in sales just before gas cars are outlawed, disaster would soon follow as consumers look to other brands.Lots To Come From Mercedes
Earlier this month, Källenius revealed that Mercedes-Benz intends to launch an onslaught of 18 new vehicles by 2027, with half of them being all-electric and the other half featuring combustion engines of various descriptions. The CEO says this will be "probably the most intense amount of launches in a three-year period in the history of [Mercedes]." These vehicles will be ready to live until 2035, but it's clear that the company wants to sell them long after that. With the Trump administration reversing the vast majority of CAFE standards fines and nixing tailpipe emissions rules, Mercedes now hopes that a similarly tolerant view of gas power will take hold in Europe, and given the influx of remarkably good yet well priced EVs from China on the Old Continent, it's quite possible that local lawmakers will change their tune on the combustion ban to sustain the European auto industry.
Mercedes CEO Says We Need A Reality Check Over Combustion Bans first appeared on Autoblog on Aug 11, 2025
This story was originally reported by Autoblog on Aug 11, 2025, where it first appeared.
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