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Daily Mail
6 days ago
- Automotive
- Daily Mail
Boss at major German car maker calls for 'reality check' on EV switch
The boss of one of Germany's biggest and most influential car makers has warned that the mandated switch to electric vehicles being forced on manufacturers is sending the industry 'at full speed against a wall' in an explosive criticism aimed at the EU. Ola Källenius, chief executive of Mercedes, said the industry risks collapsing if the European Union and other rule makers - including the UK Government - do not reconsider the proposed ban on sales of new petrol and diesel cars over the next decade. Källenius, during a media interview, joined a chorus of voices from within the motor sector calling into question the 2035 target to oust combustion engine models from showrooms. He called for a 'reality check' following the huge decline in EV sales seen in recent years, which has triggered a number of manufacturers to announce U-turns on their electric car strategies in 2025. Mr Källenius told German business paper Handelsblatt: '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 car firm - which has built one of the biggest EV model line-ups across the industry - has recently backtracked on its ambitious 2021 pledge to stop selling combustion cars 'where market conditions allow' by the decade's end. Earlier this year, it announced that it will extend its availability of petrol and hybrid models beyond 2030. Källenius said the brand will run a revised dual-powertrain strategy, keeping combustion engines on the road longer than planned, telling Auto Motor und Sport: 'Electrified high-tech combustion engines will run longer than we originally expected'. Mercedes saw a 23 per cent drop in EV sales last year, despite global EV sales rising 25 per cent to 17 million. Describing the new direction as a 'course correction', Källenius pointed to slow EV take-up in some areas and general market conditions as reasons why 'the most rational approach is for an established manufacturer to do both and not neglect either technology.' The EU's proposed ban on sales of combustion-engined cars in 2035, which it deems crucial to Europe's green ambitions, is up for review in the second half of 2025, with critics saying it would handicap European car makers already struggling with weak demand, Chinese competition and disappointing electric vehicle sales. Kaellenius, speaking this week, argued that consumers would simply hurry to buy cars with petrol or diesel engines ahead of the ban. Currently serving as head of the European auto lobby ACEA, the German auto boss has instead called for tax incentives and cheap power prices at charging stations to encourage the switch to electric cars. 'We need a reality check. Otherwise we are heading at full speed against a wall,' he said. In the first half of this year, EVs made up just 17.5 per cent of sales across the EU, UK, and EFTA (European Free Trade Association) countries. And Mercedes has already seen an 8.4 per cent dip in EV global deliveries in the first six months of this year - a comparison plotted against a decelerating sales performance posted in 2024. Källenius warned the motor industry is 'heading at full speed against a wall' in an explosive criticism aimed at the EU as he called for a 'reality check' on green targets Mercedes has formed one of the largest line-ups of EVs across its dedicated 'EQ' range in recent years but has seen a decline in global deliveries as demand for electric cars hasn't accelerated at the pace many had expected The ban on sales of new petrol and diesel cars in the EU is up review in the second half of 2025. The European Parliament's biggest lawmaker group is seeking amendments to the EU's policy during this evaluation. Jens Gieseke, the centre-right European People's Party's (EPP) negotiator on car policies, in March said it will propose changes such as allowing sales of combustion engine cars running on synthetic fuels and biofuels as well as plug-in hybrid vehicles beyond 2035. 'It was a mistake to ban the combustion engine,' said Gieseke. 'If fuels lead to a less carbon-intensive footprint, this should be recognised.' The European Commission - whose president, Ursula von der Leyen, belongs to the EPP - has so far resisted pressure to weaken the 2035 policy, which it says provides investment certainty. However, car makers are showing their concerns about the planned transition with their own delays to EV commitments and the release of new battery-powered vehicles. The most recent of these is European car giant, Stellantis. which is the parent company of 14 major brands including Citroen, Fiat, Peugeot, and Vauxhall. European head of the Franco-Italian auto maker Jean-Philippe Imparato (former CEO of Alfa Romeo) says EU-based car manufacturers must sell more EVs to cut CO2 emissions or risk penalties as part of the bloc's efforts to meet air pollution targets Its boss has warned that 'unreachable' targets to reduce CO2 emissions in the run-up to the 2035 ban on sales of combustion engines could force it to close factories. Europe chief Jean-Philippe Imparato said the Franco-Italian group faces fines of up to €2.5billion within 'two-three years' if it fails to meet emissions rules. Without a regulatory rethink by year-end, he said Stellantis 'will have to make tough decisions' while speaking during 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 automotive powerhouse earlier this year closed Vauxhall's 100-year-old Luton van factory, putting 1,100 jobs at risk. When it announced the move in November, it partly attributed the decision to the UK Government's stringent EV sales targets via the Zero Emission Vehicle Mandate.
The Independent
6 days ago
- Automotive
- The Independent
Plug-in hybrid car owners wasting £70m a year by not charging smart
Sales of plug-in hybrid models have been rocketing in 2025, up 33 per cent year-on-year according to the latest car registration data. The earliest plug-in hybrid models would barely offer 20 miles of electric range, while today's models claim up to 90 miles of EV driving. However, new research by British designer EV charging point brand Andersen has revealed that many plug-in hybrid owners are missing out on big savings as they don't have smart charging at home. Andersen's research says that 21 per cent of PHEV owners don't have smart charging at home. With over 65 per cent of these people likely to have off-street parking, that means 118,000 PHEV owners are missing out on savings of nearly £600 a year, amounting to over £70 million a year in total. Smart charging gives electrified car owners access to low-rate tariffs for charging their cars, often overnight, with prices at around 7p per kWh, over a third less than the standard electricity rate of around 25p per kWh. David Martell, CEO of Andersen EV, said: 'While growing numbers of battery electric vehicle (BEV) motorists have discovered they can save huge sums of money by having a smart home charging unit, many PHEV drivers have not taken heed of this opportunity and changed their charging behaviours. A smart home charger taking advantage of low-cost nighttime tariffs for EVs means paying just £0.07 per kilowatt-hour compared to around £0.25. 'PHEVs have evolved considerably over the past ten years. From typically having small batteries capable of 15 to 20 miles just a few years ago, today's PHEVs can have a battery range in excess of 70 miles with drivers able to run purely on electric for the vast majority of their weekly motoring.' Latest Society of Motor Manufacturers & Traders (SMMT) data shows that 124,528 new PHEVs have been registered in the UK so far this year. That means owners of new PHEVs in 2025 alone could make savings of more than £10.2 million over the next 12 months by taking advantage of smart charging.
Auto Express
21-07-2025
- Automotive
- Auto Express
The Electric Car Grant has shot the UK car industry in the foot
Talk about a great way to ruin good news. With electric car take-up growing far more slowly than required to hit the Government's ZEV mandate targets, the car industry has been crying out for incentives to help boost interest in what is still very much new tech to most drivers. Advertisement - Article continues below So it's impressive to do what a whole sector has been calling for but still shoot yourself in the foot with a scheme so complicated that no-one understands how it's going to work, or which cars will be eligible, days after it's announced. It's a shambles, or as one senior UK car industry exec put it to me last week, a 'flipping nightmare'. I also hear that the E-mail address that manufacturers need to use to register their cars wasn't even working when the announcement of the scheme went live. Then there's the issue of cars just over the £37,000 threshold, which is oddly close to, yet not the same as the Government's VED expensive-car cut-off of £40k. Brands will be frantically recalculating to see how many of the 15 or so cars within £3,000 of the £37k line could be reduced in price to become eligible. That's if they jump through the required eco hoops to make the cut for £3,750 or £1,500 grants. Renault's Scenic dropped by £200 within 48 hours of the announcement to be a fiver under the threshold. Provided Renault ticks those secret eco boxes. We've ended up with a scheme seemingly designed with what some might see as the noble aim of helping European brands to compete with Chinese rivals under the guise of environmental credentials. It seems – although any level of actual detail or evidence of a full plan from the Department for Transport would be helpful – that the environmental aspect of the grant is designed to increase transparency and encourage more local production. But because the policy apparently wasn't fully formed when it was announced, we don't really know. That causes a ripple through the market. EV purchases dived through the floor in the days following the announcement as buyers wait, potentially for weeks, to see if their prospective new EV gets a whopping discount. So the Government's move to boost EV sales could have harpooned them in the short term. Which is careless. Buy a car with Auto Express. Our nationwide dealer network has some fantastic cars on offer right now with new, used and leasing deals to choose from... Find a car with the experts Range Rover's secret mid-size EV: Inside its £500m factory Range Rover's secret mid-size EV: Inside its £500m factory We take an exclusive look inside JLR's revamped Liverpool site as the brand gears up for EV production Car Deal of the Day: The Audi A3 Saloon may be posh but not at this price Car Deal of the Day: The Audi A3 Saloon may be posh but not at this price It's posh, well appointed, and refined to drive – the Audi A3 Saloon is our Deal of the Day for July 18 Chinese cars will take over as Britain's best sellers Chinese cars will take over as Britain's best sellers With a dramatic rise in sales, Mike Rutherford thinks it's only a matter of time before Chinese cars outsell all other countries in the UK
Top Gear
02-06-2025
- Automotive
- Top Gear
Opinion: a cheap, used Fiat Panda is more luxurious than an expensive new 'luxury' car
Opinion "Simplicity and convenience are luxury. Think of it like that and new cars are infuriatingly awful..." Skip 1 photos in the image carousel and continue reading We are obsessed with luxury. We crave luxury hotels with goose down pillows. If we're lucky perhaps we can splash out on a luxury watch. Our face wash is luxury. We can barely survive without quilted and luxurious toilet roll. Car manufacturers are similarly afflicted. Many of them aren't car manufacturers at all, they say, but 'luxury brands'. A loose concept that nobody can really explain without descending into pretentious expressions that string together a load of alluring sounding words but don't actually mean anything. I've lost count of the number of presentations I've sat through telling me about target customers who all wear Gucci loafers and spend their days sipping cocktails while planning their next philanthropic endeavour. Advertisement - Page continues below Yet the sad reality is that car manufacturers are now ill-equipped to provide luxury. No matter how deep the carpet, how rarefied the materials, how silent or powerful or sophisticated. The truly luxurious motoring experience is dead. It took me buying a £1,300 Fiat Panda with cloth trim and wind up rear windows to realise it. No, I'm not going mad. Just think about what real luxury means. Time is luxury. All demands on you melting away is luxury. Simplicity and convenience are luxury. Think of it like that and new cars are infuriatingly awful. In many ways, the Panda is the most luxurious thing I've driven for a long time. The benefits of this humble little car were brought into sharp focus as I was simultaneously getting to know a new test car. A BMW that cost 50 times as much. You might like It starts with something as basic as the key. The Panda's is slender and small and is inserted into an ignition barrel, decluttering the interior. The BMW's is massive but has tiny, fiddly buttons (some on the side, one on the front). It rattles in the cupholder as you drive. Jump into the Panda and within five seconds you can be driving. The BMW requires you to select a profile. You can move off in 'Guest' but then none of your preferred settings are loaded. So, I select 'Driver'. At which point it flashes a warning about this changing settings (the reason I'm doing it), and I have to then hit 'Activate'. There's a long delay while this new profile loads, during which I can't use the screen to turn up the heater, or enter something into the nav, or change the radio. The Panda is already down the road, of course. Advertisement - Page continues below Now I need to deselect the audible speed limit warning. Luckily this is done with the simple press of a button. But to disable the godawful lane departure warning system requires me to hit the main menu button on the touchscreen, scroll to drive settings and select (incredibly, this tile moves at random times), then find and deactivate the system, then confirm when it warns me I'm deactivating it. At which point it's possible that I've crashed but it is certain I will want to pull over and set the thing on fire. This is not luxury. And these systems are the death of what cars represent: freedom and escape. The luxury of being the masters of our own destiny. The Panda treasures all those things and a strange peace washes over you as soon as you drop in and start to drive. No new car can match that feeling, whatever the price. Thank you for subscribing to our newsletter. Look out for your regular round-up of news, reviews and offers in your inbox. Get all the latest news, reviews and exclusives, direct to your inbox.
Daily Mail
29-05-2025
- Automotive
- Daily Mail
Used electric cars lose half their value in two years - manufacturers blamed for discounting new prices
Electric cars are losing more than half their value within two years, according to a new report. Analysis by Cox Automotive has suggested that a 24-month-old battery car sold to the trade in April on average retained just 47 per cent of its original new cost. However, two years earlier, an EV of the same age profile was - on average - holding on to 83 per cent of its new price. The dramatic acceleration in depreciation is being blamed on manufacturers who are caught in an unprecedented catch 22 scenario currently playing out in the automotive sector. With car makers being forced to increase their sales of EVs to meet Government-mandated targets, they are offering huge discounts on new models to make them more attractive to new customers in order to meet their quotas. But this is having a significant knock-on impact for residual prices, as drivers are seeing more value for money buying new rather than opting for a nearly-new second-hand EV, which has seen used prices tumble. This graphs shows the average auction sale price for EVs under 24 months old as a percentage of their original cost new, with the typical electric car retaining just 47% of its showroom price The Zero Emission Vehicle (ZEV) mandate introduced to law last January requires mainstream car manufacturers to sell an increasing share of EVs every year between now and 2035. Failure to adhere to these quotas can result in significant fines of £12,000 for every car sold below the required threshold for that year. In 2024, the minimum quota was for 22 per cent of all deliveries by manufacturers to be zero-emission electric cars. However, the target jumps to 28 per cent this year, 33 per cent in 2026 and 80 per cent by 2030. Officials reported that every mainstream brand achieved last year's 22 per cent EV sales mix - though at a huge cost to car companies. The Society of Motor Manufacturers and Traders (SMMT) reported that makers lost a collective £4billion in discounted prices as they tried to make electric cars appear more attractive to petrol and diesel counterparts. Mike Hawes, chief exec at the trade body, described the scale of these discounts as 'unsustainable'. Labour's decision to force EV owners to pay car tax for the first time from April has also dampened demand for new models - and triggered further manufacturer discounts. Both Vauxhall and Abarth - the performance division of Fiat - have recently reduced prices of their electric cars so that they sit below a £40,000 expensive car tax supplement being imposed on new EVs starting from next year. But Cox Automotive Europe discounts are now having a huge knock-on effect on the second-hand market, because 'nearly new' used EVs are falling in value as a direct result. Second-hand electric vehicle prices are also taking a hit from the huge acceleration in available models coming to market, with March seeing a record 69,313 new electric cars entering the road. A rapid development of battery technology is also stinging the value of quickly outdated older EVs, while the emergence of new cheaper brands - predominantly from China - is also pushing second-hand values lower. As such, a two-year-old electric car today is now holding just 53 per cent of its original price. In contrast, the average diesel car selling to trade with the same age profile is retaining 30 per cent of its new value. When second-hand EV values were at their peak in 2022 - as a result of supply constraints around the Covid-19 pandemic - a two-year-old electric car was losing only 17 per cent of its showroom price. Philip Nothard, insight director at Cox Automotive Europe, said: 'The current performance of nearly-new EVs in the used market is still much lower than we would anticipate for vehicles in this age profile. 'The heavy discounts offered on new vehicles mean that consumers can pick up a brand-new model for the same price as a nearly-new model. 'This gives consumers very little incentive to consider them, which is a real blow to a market that needs all the incentives it can get its hands on.' On the flipside, EVs between three to five years old are performing much better. At auction, these vehicles have seen only a modest price drop of 15 per cent on average in the same time period as they aren't impacted as severely by heavy manufacturer discounts and tend to attract a different driver. Last month, Prime Minister Sir Keir Starmer was forced to water down Britain's electric vehicle sales targets in response to Donald Trump's watershed tariff announcement. The PM's new measures included additional leniencies in the ZEV mandate in a bid to 'support car makers'. And only last week, a leaked letter from transport minister Lilian Greenwood revealed that the Government is considering dumping the expensive car supplement - widely being referred to as the 'Tesla Tax' - for new electric cars in an effort to stir up more demand for green vehicles. Nothard added: 'The used market is a crucial source of profitability for the automotive sector. 'Within increasingly volatile market conditions, the strength and consistency of used operations are crucial. 'To ensure this, more support for the used EV sector is needed to put the brakes on the rapid pace of depreciation.'
