Latest news with #Källenius
The Irish Sun
6 days ago
- Automotive
- The Irish Sun
Boss of huge car firm warns brands are ‘heading full speed into a wall' and could ‘collapse' over EVs
He also warned of a 'reality check' and a petrol rush that 'doesn't help the climate at all.' CHARGED UP Boss of huge car firm warns brands are 'heading full speed into a wall' and could 'collapse' over EVs EUROPE'S car industry is 'heading at full speed against a wall', the boss of a huge car firm has warned. In a stark intervention, Mercedes-Benz boss Ola Källenius said the industry risks collapsing if the EU doesn't rethink its ban on new petrol and diesel cars Advertisement 3 Mercedes-Benz boss Ola Källenius says a 'reality check' is needed before the 2035 ban on combustion-engine sales is locked in Credit: AFP 3 Europe's car industry is 'heading at full speed against a wall' and risks collapsing if EU doesn't rethink ban on petrol and diesel cars, says boss Credit: AFP 3 Electric cars remain far from dominating the market, with EVs making up just 17.5 per cent of sales across the EU in the first half of this year Credit: EPA He also said a 'reality check' was needed before the 2035 ban on combustion-engine sales is locked in. Mr Källenius told German business paper Handelsblatt: "We need a reality check. Otherwise, we are heading at full speed against a wall. "Of course, we have to decarbonise, but it has to be done in a technology-neutral way. We must not lose sight of our economy." The luxury brand — once gung-ho about going fully electric in Europe — has already dropped its ambitious 2021 pledge to stop selling combustion cars 'where market conditions allow' by the decade's end. Advertisement Källenius, who also heads the European Automobile Manufacturers' Association (ACEA), now warns the EU's policy could trigger a last-minute rush for petrol and diesel cars before the cut-off, which 'doesn't help the climate at all.' Electric cars remain far from dominating the market. In the first half of this year, EVs made up just 17.5 per cent of sales across the EU, UK, and EFTA countries, while plug-in hybrids took 8.7 per cent. Traditional hybrids accounted for 35 per cent, but that figure includes mild-hybrids, which critics say aren't 'true' hybrids. Advertisement Mercedes' own figures show EV sales slipping — just 8.4 per cent of its global deliveries in the first six months of 2025, down from 9.7 per cent last year. Even with plug-ins included, electrified models made up just 20.1 per cent of shipments. Tesla's Cybertruck Graveyard: Hundreds of Unsold EVs Abandoned at Shopping Mall The EU's 2035 ban is due for review in the coming months, but Brussels has so far signalled no U-turn, reiterating in March its commitment to zero-emission new cars by the mid-2030s. It comes as the boss of Stellantis — the giant behind 14 brands including Fiat, Peugeot, and Maserati — warned that unreachable EU CO2 targets could force plant closures. Advertisement Europe chief Jean-Philippe Imparato said the Franco-Italian group faces fines of up to €2.5 billion within 'two-three years' if it fails to meet emissions rules. Without a regulatory rethink by year-end, 'we will have to make tough decisions,' he told a conference in Rome. 'I have two solutions: either I push like hell (on electric)… or I close down ICE (internal combustion engine vehicles). And therefore I close down factories,' he said, pointing to the risk for sites such as Stellantis' van plant in Atessa, Italy. Advertisement The warning comes amid fresh turmoil for Stellantis, with its new CEO Antonio Filosa inheriting the fallout from Donald Trump's 25 per cent US import tariffs and a crisis at Maserati, which has seen sales plunge from 26,600 in 2023 to 11,300 last year. With EV targets biting, petrol and diesel models under threat, and luxury brands cancelling investments — including Maserati's £1.3bn electric MC20 Folgore — Europe's car bosses are sending a clear signal to Brussels: ease off, or risk slamming the brakes on the continent's auto industry.
Scottish Sun
6 days ago
- Automotive
- Scottish Sun
Boss of huge car firm warns brands are ‘heading full speed into a wall' and could ‘collapse' over EVs
He also warned of a 'reality check' and a petrol rush that 'doesn't help the climate at all.' CHARGED UP Boss of huge car firm warns brands are 'heading full speed into a wall' and could 'collapse' over EVs Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) EUROPE'S car industry is 'heading at full speed against a wall', the boss of a huge car firm has warned. In a stark intervention, Mercedes-Benz boss Ola Källenius said the industry risks collapsing if the EU doesn't rethink its ban on new petrol and diesel cars Sign up for Scottish Sun newsletter Sign up 3 Mercedes-Benz boss Ola Källenius says a 'reality check' is needed before the 2035 ban on combustion-engine sales is locked in Credit: AFP 3 Europe's car industry is 'heading at full speed against a wall' and risks collapsing if EU doesn't rethink ban on petrol and diesel cars, says boss Credit: AFP 3 Electric cars remain far from dominating the market, with EVs making up just 17.5 per cent of sales across the EU in the first half of this year Credit: EPA He also said a 'reality check' was needed before the 2035 ban on combustion-engine sales is locked in. Mr Källenius told German business paper Handelsblatt: "We need a reality check. Otherwise, we are heading at full speed against a wall. "Of course, we have to decarbonise, but it has to be done in a technology-neutral way. We must not lose sight of our economy." The luxury brand — once gung-ho about going fully electric in Europe — has already dropped its ambitious 2021 pledge to stop selling combustion cars 'where market conditions allow' by the decade's end. Källenius, who also heads the European Automobile Manufacturers' Association (ACEA), now warns the EU's policy could trigger a last-minute rush for petrol and diesel cars before the cut-off, which 'doesn't help the climate at all.' Electric cars remain far from dominating the market. In the first half of this year, EVs made up just 17.5 per cent of sales across the EU, UK, and EFTA countries, while plug-in hybrids took 8.7 per cent. Traditional hybrids accounted for 35 per cent, but that figure includes mild-hybrids, which critics say aren't 'true' hybrids. Mercedes' own figures show EV sales slipping — just 8.4 per cent of its global deliveries in the first six months of 2025, down from 9.7 per cent last year. Even with plug-ins included, electrified models made up just 20.1 per cent of shipments. Tesla's Cybertruck Graveyard: Hundreds of Unsold EVs Abandoned at Shopping Mall The EU's 2035 ban is due for review in the coming months, but Brussels has so far signalled no U-turn, reiterating in March its commitment to zero-emission new cars by the mid-2030s. It comes as the boss of Stellantis — the giant behind 14 brands including Fiat, Peugeot, and Maserati — warned that unreachable EU CO2 targets could force plant closures. Europe chief Jean-Philippe Imparato said the Franco-Italian group faces fines of up to €2.5 billion within 'two-three years' if it fails to meet emissions rules. Without a regulatory rethink by year-end, 'we will have to make tough decisions,' he told a conference in Rome. 'I have two solutions: either I push like hell (on electric)… or I close down ICE (internal combustion engine vehicles). And therefore I close down factories,' he said, pointing to the risk for sites such as Stellantis' van plant in Atessa, Italy. The warning comes amid fresh turmoil for Stellantis, with its new CEO Antonio Filosa inheriting the fallout from Donald Trump's 25 per cent US import tariffs and a crisis at Maserati, which has seen sales plunge from 26,600 in 2023 to 11,300 last year. With EV targets biting, petrol and diesel models under threat, and luxury brands cancelling investments — including Maserati's £1.3bn electric MC20 Folgore — Europe's car bosses are sending a clear signal to Brussels: ease off, or risk slamming the brakes on the continent's auto industry.
Miami Herald
23-06-2025
- Automotive
- Miami Herald
Mercedes Boss Hands The Combustion Engine Another Lifeline
Mercedes has been teasing AMG's first in-house all-electric vehicle, a 1,000-horsepower-plus super sedan that will redefine Affalerbach's definition of an Autobahn animal. On the other end of the spectrum, the entry-level CLA has arrived with similarly brilliant all-electric technology, and the automaker had previously announced intentions for all its products to be EVs around the end of the decade. Those plans have continually shifted as demand has, and based on comments Mercedes CEO Ola Källenius recently made to German publication Auto Motor und Sport, they're seemingly shifting again. When asked if the decision to offer the GLC SUV as an EV and also with a hybridized combustion engine was a stopgap measure, Källenius responded, "The electrified, high-tech combustion engines will run longer than we originally expected. We have made this course correction." The CEO added, "I believe the most rational approach in the current situation is for an established manufacturer to do both [EV and gas] and not neglect one technology." If those sorts of comments sound familiar, BMW CEO Oliver Zipse and Toyota Chairman Akio Toyoda have expressed similar sentiments, saying that focusing all one's resources on exclusively building cars that are not yet fully supported in terms of worldwide infrastructure and demand is simply implausible for any automaker that wishes to exist long enough to see global EV adoption take hold en masse. To be fair, Källenius hasn't just come to this realization now. Last year, he announced plans to move the EQS and S-Class under one nameplate, and Mercedes, like most of its peers, has always accompanied its all-electric goals with the condition that they are subject to market conditions. And let's face it, the market for new luxury EVs is not exactly booming. "The new CLA is the greeting from the kitchen of an entire family," Källenius said. "Then the core segments will follow with the electric versions of the GLC, C-Class, and E-Class. We still have an incredible amount in the pipeline." As we touched on above, Mercedes is dropping the EQ "sub-brand," which was essentially a gamble based on the supposition that EV buyers wanted association with the Mercedes brand but also a unique identity. It was also a marketing ploy because Mercedes EQ models looked vastly different from traditionally named and powered Benzes, but the combination of a new name and jellybean styling led one dealer to tell Automotive News (subscription required) in 2023, "Our cars need to be 'want' cars. The S-Class has maintained good loylty because it's aspirational. An EQS is not something that most people aspire to own." Källenius' comments indicate that, like BMW (which sells identically styled i7 EV and 7 Series sedans), future EVs will look similar to their combustion-powered counterparts, and those hybridized counterparts will now likely be sold well into the next decade. The shift in styling strategy has already begun. The all-electric G 580 with EQ Technology has a silly name, but it looks like the solid G-Wagen it is. Notably, Porsche is also now working on a new gas Macan after the EV's sales failed to sustain the nameplate, reports Autocar. In America, both the old gas and new electric Macan are sold concurrently, but in Europe, cybersecurity laws meant Porsche had to move on, and with the 718, too. Now, it may be returning to combustion, but have no doubt, more EQs and electric Caymans will still be developed. Related: Genesis Is Going After BMW And Mercedes Where It Will Hurt Most Copyright 2025 The Arena Group, Inc. All Rights Reserved.
Miami Herald
07-06-2025
- Automotive
- Miami Herald
Mercedes CEO Has a Trump Tariff Deal That Could Reshape US-EU Auto Trade
Hours before an event in Michigan on April 29, President Trump signed two executive orders aimed at reducing the impact of trade tariffs on the automotive industry. One order prevents automakers, who face 25% tariffs on auto imports, from being subject to additional levies on materials. The other order allows automakers to apply for tariff relief, which will reduce a portion of the costs associated with their imported components. However, these benefits will be gradually phased out over the next two years. During a rally that night in Michigan, Trump described this move as providing "a little flexibility" to the automotive industry, hoping to persuade automakers to produce their cars and components in the United States. He said, "We gave them a little time before we slaughter them if they don't do this. They're going to make so much money. They're going to have so many jobs." Despite the developments, German luxury car manufacturer Mercedes-Benz withdrew its earnings guidance for 2025 during the announcement of its Q1 results. This decision was driven by uncertainty regarding the potential impact of President Trump's tariffs on imported vehicles. The company also stated that if auto tariffs remained at their current levels, it would decrease profit margins by 300 basis points on cars and 100 basis points on vans. In a new interview with German business publication Der Spiegel, Mercedes-Benz CEO Ola Källenius said that while he is looking at different scenarios, the kind of investments he has to make are ones that could last for decades, rather than ones made "in response to a volatile situation" such as the current US-EU tariff situation that is currently unfolding. Recognizing that the current administration has the impression "that we in Europe are closed to certain issues and only demand openness where we have strengths," the CEO proposed a deal meant to balance its imports and exports. In his proposal, Källenius would allow duty-free imports of U.S.-built cars into Europe in exchange for tariff waivers on an equal number of vehicles exported by EU automakers to the U.S., adding that it would alleviate and fulfill its desire to reindustrialize and become an attractive destination for companies to set up factories for exported goods. "For every car that leaves the USA or Europe, a car from the other side comes in duty-free," Källenius told Spiegel. "We have put this idea to both sides, and it is a possible component of the negotiations between the USA and the EU." Such a solution would work for a company like Mercedes-Benz. In the same interview, Källenius noted that Mercedes "is a major producer" of cars in the United States, adding that the company builds and sells around 350,000 vehicles in the country, which could count for consideration in trade talks. "But the models we build and sell [in the U.S.] are not the same," Källenius told Spiegel. "Two-thirds of the vehicles from our plant in Tuscaloosa, Alabama, are exported to 150 countries worldwide. We therefore contribute to a more balanced trade balance for the USA. We believe this should be taken into account in the negotiations." Källenius's idea of rewarding U.S. exports is roughly on the same wavelength as similar ideas proposed by other automotive CEOs. Previously, Ford CEO Jim Farley raised the idea that automakers like Ford should get credit for building cars in the United States that are shipped overseas for international consumption, noting that it is "essential" that the federal government come up with policies that encourage manufacturers to build cars for export, adding that it exports nearly as many vehicles as its brings in. "So many of the vehicles we build here are exported around the globe," Farley said. "Shouldn't we get credit for that?" Around the same time Farley made those comments, the export of some high-ticket models to China, including the F-150 Raptor, Mustang, Bronco, and Lincoln Navigator, was halted due to retaliatory tariffs as high as 150% on imported vehicles. For what it's worth, German automakers like Volkswagen, BMW, and Mercedes-Benz have a lot of leverage for a potential U.S. tariff deal, especially if they propose that German automakers receive credits based on the number of vehicles they produce in the United States. These aren't small potatoes, either. BMW alone manufactures some of its highest-volume models, such as the BMW X3, X4, X5, X6, X7, and XM, at its Spartanburg, South Carolina, plant, which serves both U.S. and international markets. According to data from the U.S. Department of Commerce, BMW is the largest automotive exporter by value in the U.S., shipping "more than $10 billion" of cars in 2024. American hands assemble these cars, no matter the badge or its supposed country of origin. Copyright 2025 The Arena Group, Inc. All Rights Reserved.
Yahoo
12-05-2025
- Automotive
- Yahoo
Mercedes-Benz CEO on Trump tariffs: No plans to introduce new earnings guidance, price hikes
Mercedes-Benz ( has no plans to be whipsawed by Trump's tariffs. CEO Ola Källenius told Yahoo Finance on a call Monday afternoon that the company had no plans to raise prices to offset tariffs from the Trump administration. By the same token, Källenius said the company will not restore the financial outlook it withdrew several weeks ago amid the uncertainty. "What we have decided to do in this current environment is to send a signal of stability towards our customers, but also our business partners," Källenius said. "And we will see how things develop. We are in the position that we don't have to make hasty decisions on things like that [price increases], and we won't. So I don't want to pull out the crystal ball now and say what's the world going to look like six months from now, but our priority for the US market will be long-term growth, taking care of our great customer base." The Trump administration tossed a small bone to global automakers several weeks ago, moving to relax some of the 25% tariffs slapped on autos and auto parts. The new executive order allows car companies to be reimbursed for up to 3.75% of the value of US-assembled vehicles to help offset the cost of tariffs in year one. In year two, the rebate would be 2.5%, before phasing out in year three. Read more: The latest news and updates on Trump's tariffs More than half of the 374,000 vehicles Mercedes-Benz sold in the US last year were imported, according to the company. About 13% of German car exports go to the United States, more than to any other country, according to data from the German auto association VDA. Källenius added that Mercedes will start producing its top-selling GLC SUV at its plant in Tuscaloosa, Ala., in a bid to produce locally and sidestep some tariffs. Amid the challenging backdrop, Mercedes-Benz said in late April that first quarter profits fell 43% from a year ago to 1.73 billion euros. Revenue declined 7.4% year over year to 33.22 billion euros. The company's car sales declined 4% in the first quarter. While sales in North America advanced 1%, a 7% decline in Europe and a 10% decrease in China overshadowed the minor gain. "No," Källenius said regarding whether guidance will be restored as more clarity on tariffs has been received. "We decided in our quarter one call to say this is a situation where it almost feels like there's new information every day, or certainly every week, that if you don't have to change your mind four times in a month, it doesn't make any sense." Mercedes-Benz shares are down about 2% year to date compared to a 1% drop for the S&P 500 (^GSPC). Brian Sozzi is Yahoo Finance's Executive Editor. Follow Sozzi on X @BrianSozzi, Instagram and on LinkedIn. Tips on stories? Email Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
