Latest news with #Handelsblatt
The Sun
4 days ago
- Automotive
- The Sun
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' and risks collapsing if the EU doesn't rethink its ban on new petrol and diesel cars, the boss of a huge car firm has warned. In a stark intervention, he said a 'reality check' was needed before the 2035 ban on combustion-engine sales is locked in. 3 3 3 Mercedes-Benz boss Ola 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. 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.
The Advertiser
5 days ago
- Automotive
- The Advertiser
Mercedes-Benz says 2035 ICE ban could ‘collapse' European auto industry
Mercedes-Benz CEO Ola Kallenius has told a German newspaper the European car industry is facing "collapse" if the planned 2035 ban on the sale of new internal combustion engine-powered vehicles goes ahead. In the interview with Handelsblatt, the Mercedes-Benz boss spoke about the ICE ban, saying, "We need to do a reality check, otherwise, we will drive full throttle against the wall." He added that the European auto industry could "collapse" if the 2035 ban on the sale of ICE-powered vehicles, which the European Union (EU) is due to review in the second half of this year, remains in place. Mr Kallenius is also the head of the European Automobile Manufacturers Association (ACEA), which has previously supported a 100 per cent reduction in carbon dioxide vehicle emissions, a 'de facto' ban on internal combustion engine sales, by 2035. CarExpert can save you thousands on a new car. Click here to get a great deal. It follows comments from Carlos Tavares, the previous CEO of Stellantis – owner of brands including Alfa Romeo, Maserati and Peugeot – who said the move would cause "social consequences". Australia doesn't have a national plan to ban sales of ICE vehicles, however the Australian Capital Territory (ACT) announced its own 2035 ban. The Mercedes-Benz boss, reports Handelsblatt, said a firm deadline on the sales ban of petrol and diesel internal combustion engines shouldn't be put in place. Mr Kallenius didn't call for more tariffs on imports, having previously suggested them as the "crudest instrument" in dealing with increased competition from more affordable EVs, predominantly (but not only) from China, in Europe. Instead, he suggested greater incentives for consumers to buy electric vehicles (EVs) should be implemented, with cheaper electricity at charging stations, for example. "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," Mr Kaellenius said. "That's no use to our climate." The comments came as the global auto industry faces headwinds from other factors, such as the impact of import tariffs into the US – the world's second-largest car market, and Mercedes-Benz's second biggest for passenger cars after China, too. "Our industry is experiencing heavy rain, hail, storm and snow at the same time. Auto construction is a tough business, more than ever," Mr Kallenius said. The Mercedes-Benz chief has admitted the automaker made mistakes in its approach to EVs, which saw it suspend sales of some electric models in the US due to slow sales. Mercedes-Benz sold 2.4 million vehicles in 2024, a fall of 4 per cent year-on-year, with a decline of 24 per cent for its EVs. In Australia, the brand is currently offering discounts of up to $70,000 on several electric models, and among its EVs only the EQB and EQE SUV have posted year-on-year increases so far in 2025. Mercedes-Benz is moving away from offering EVs with dramatically different styling and unique nameplates to its ICE models. EQ names are being phased out, and the brand is moving to a "coherent" design language across its portfolio. Mercedes-Benz will launch a new mid-size electric SUV – the GLC with EQ Technology, which replaces the old EQC – at next month's IAA Mobility Show in the hometown of arch-rival BMW, which will reveal the rival BMW iX3 that will be the first of its 'Neue Klasse' generation of EVs. MORE: Explore the Mercedes-Benz showroom MORE: Why Mercedes-Benz isn't worried about losing sales battle with BMW in Australia Content originally sourced from: Mercedes-Benz CEO Ola Kallenius has told a German newspaper the European car industry is facing "collapse" if the planned 2035 ban on the sale of new internal combustion engine-powered vehicles goes ahead. In the interview with Handelsblatt, the Mercedes-Benz boss spoke about the ICE ban, saying, "We need to do a reality check, otherwise, we will drive full throttle against the wall." He added that the European auto industry could "collapse" if the 2035 ban on the sale of ICE-powered vehicles, which the European Union (EU) is due to review in the second half of this year, remains in place. Mr Kallenius is also the head of the European Automobile Manufacturers Association (ACEA), which has previously supported a 100 per cent reduction in carbon dioxide vehicle emissions, a 'de facto' ban on internal combustion engine sales, by 2035. CarExpert can save you thousands on a new car. Click here to get a great deal. It follows comments from Carlos Tavares, the previous CEO of Stellantis – owner of brands including Alfa Romeo, Maserati and Peugeot – who said the move would cause "social consequences". Australia doesn't have a national plan to ban sales of ICE vehicles, however the Australian Capital Territory (ACT) announced its own 2035 ban. The Mercedes-Benz boss, reports Handelsblatt, said a firm deadline on the sales ban of petrol and diesel internal combustion engines shouldn't be put in place. Mr Kallenius didn't call for more tariffs on imports, having previously suggested them as the "crudest instrument" in dealing with increased competition from more affordable EVs, predominantly (but not only) from China, in Europe. Instead, he suggested greater incentives for consumers to buy electric vehicles (EVs) should be implemented, with cheaper electricity at charging stations, for example. "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," Mr Kaellenius said. "That's no use to our climate." The comments came as the global auto industry faces headwinds from other factors, such as the impact of import tariffs into the US – the world's second-largest car market, and Mercedes-Benz's second biggest for passenger cars after China, too. "Our industry is experiencing heavy rain, hail, storm and snow at the same time. Auto construction is a tough business, more than ever," Mr Kallenius said. The Mercedes-Benz chief has admitted the automaker made mistakes in its approach to EVs, which saw it suspend sales of some electric models in the US due to slow sales. Mercedes-Benz sold 2.4 million vehicles in 2024, a fall of 4 per cent year-on-year, with a decline of 24 per cent for its EVs. In Australia, the brand is currently offering discounts of up to $70,000 on several electric models, and among its EVs only the EQB and EQE SUV have posted year-on-year increases so far in 2025. Mercedes-Benz is moving away from offering EVs with dramatically different styling and unique nameplates to its ICE models. EQ names are being phased out, and the brand is moving to a "coherent" design language across its portfolio. Mercedes-Benz will launch a new mid-size electric SUV – the GLC with EQ Technology, which replaces the old EQC – at next month's IAA Mobility Show in the hometown of arch-rival BMW, which will reveal the rival BMW iX3 that will be the first of its 'Neue Klasse' generation of EVs. MORE: Explore the Mercedes-Benz showroom MORE: Why Mercedes-Benz isn't worried about losing sales battle with BMW in Australia Content originally sourced from: Mercedes-Benz CEO Ola Kallenius has told a German newspaper the European car industry is facing "collapse" if the planned 2035 ban on the sale of new internal combustion engine-powered vehicles goes ahead. In the interview with Handelsblatt, the Mercedes-Benz boss spoke about the ICE ban, saying, "We need to do a reality check, otherwise, we will drive full throttle against the wall." He added that the European auto industry could "collapse" if the 2035 ban on the sale of ICE-powered vehicles, which the European Union (EU) is due to review in the second half of this year, remains in place. Mr Kallenius is also the head of the European Automobile Manufacturers Association (ACEA), which has previously supported a 100 per cent reduction in carbon dioxide vehicle emissions, a 'de facto' ban on internal combustion engine sales, by 2035. CarExpert can save you thousands on a new car. Click here to get a great deal. It follows comments from Carlos Tavares, the previous CEO of Stellantis – owner of brands including Alfa Romeo, Maserati and Peugeot – who said the move would cause "social consequences". Australia doesn't have a national plan to ban sales of ICE vehicles, however the Australian Capital Territory (ACT) announced its own 2035 ban. The Mercedes-Benz boss, reports Handelsblatt, said a firm deadline on the sales ban of petrol and diesel internal combustion engines shouldn't be put in place. Mr Kallenius didn't call for more tariffs on imports, having previously suggested them as the "crudest instrument" in dealing with increased competition from more affordable EVs, predominantly (but not only) from China, in Europe. Instead, he suggested greater incentives for consumers to buy electric vehicles (EVs) should be implemented, with cheaper electricity at charging stations, for example. "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," Mr Kaellenius said. "That's no use to our climate." The comments came as the global auto industry faces headwinds from other factors, such as the impact of import tariffs into the US – the world's second-largest car market, and Mercedes-Benz's second biggest for passenger cars after China, too. "Our industry is experiencing heavy rain, hail, storm and snow at the same time. Auto construction is a tough business, more than ever," Mr Kallenius said. The Mercedes-Benz chief has admitted the automaker made mistakes in its approach to EVs, which saw it suspend sales of some electric models in the US due to slow sales. Mercedes-Benz sold 2.4 million vehicles in 2024, a fall of 4 per cent year-on-year, with a decline of 24 per cent for its EVs. In Australia, the brand is currently offering discounts of up to $70,000 on several electric models, and among its EVs only the EQB and EQE SUV have posted year-on-year increases so far in 2025. Mercedes-Benz is moving away from offering EVs with dramatically different styling and unique nameplates to its ICE models. EQ names are being phased out, and the brand is moving to a "coherent" design language across its portfolio. Mercedes-Benz will launch a new mid-size electric SUV – the GLC with EQ Technology, which replaces the old EQC – at next month's IAA Mobility Show in the hometown of arch-rival BMW, which will reveal the rival BMW iX3 that will be the first of its 'Neue Klasse' generation of EVs. MORE: Explore the Mercedes-Benz showroom MORE: Why Mercedes-Benz isn't worried about losing sales battle with BMW in Australia Content originally sourced from: Mercedes-Benz CEO Ola Kallenius has told a German newspaper the European car industry is facing "collapse" if the planned 2035 ban on the sale of new internal combustion engine-powered vehicles goes ahead. In the interview with Handelsblatt, the Mercedes-Benz boss spoke about the ICE ban, saying, "We need to do a reality check, otherwise, we will drive full throttle against the wall." He added that the European auto industry could "collapse" if the 2035 ban on the sale of ICE-powered vehicles, which the European Union (EU) is due to review in the second half of this year, remains in place. Mr Kallenius is also the head of the European Automobile Manufacturers Association (ACEA), which has previously supported a 100 per cent reduction in carbon dioxide vehicle emissions, a 'de facto' ban on internal combustion engine sales, by 2035. CarExpert can save you thousands on a new car. Click here to get a great deal. It follows comments from Carlos Tavares, the previous CEO of Stellantis – owner of brands including Alfa Romeo, Maserati and Peugeot – who said the move would cause "social consequences". Australia doesn't have a national plan to ban sales of ICE vehicles, however the Australian Capital Territory (ACT) announced its own 2035 ban. The Mercedes-Benz boss, reports Handelsblatt, said a firm deadline on the sales ban of petrol and diesel internal combustion engines shouldn't be put in place. Mr Kallenius didn't call for more tariffs on imports, having previously suggested them as the "crudest instrument" in dealing with increased competition from more affordable EVs, predominantly (but not only) from China, in Europe. Instead, he suggested greater incentives for consumers to buy electric vehicles (EVs) should be implemented, with cheaper electricity at charging stations, for example. "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," Mr Kaellenius said. "That's no use to our climate." The comments came as the global auto industry faces headwinds from other factors, such as the impact of import tariffs into the US – the world's second-largest car market, and Mercedes-Benz's second biggest for passenger cars after China, too. "Our industry is experiencing heavy rain, hail, storm and snow at the same time. Auto construction is a tough business, more than ever," Mr Kallenius said. The Mercedes-Benz chief has admitted the automaker made mistakes in its approach to EVs, which saw it suspend sales of some electric models in the US due to slow sales. Mercedes-Benz sold 2.4 million vehicles in 2024, a fall of 4 per cent year-on-year, with a decline of 24 per cent for its EVs. In Australia, the brand is currently offering discounts of up to $70,000 on several electric models, and among its EVs only the EQB and EQE SUV have posted year-on-year increases so far in 2025. Mercedes-Benz is moving away from offering EVs with dramatically different styling and unique nameplates to its ICE models. EQ names are being phased out, and the brand is moving to a "coherent" design language across its portfolio. Mercedes-Benz will launch a new mid-size electric SUV – the GLC with EQ Technology, which replaces the old EQC – at next month's IAA Mobility Show in the hometown of arch-rival BMW, which will reveal the rival BMW iX3 that will be the first of its 'Neue Klasse' generation of EVs. MORE: Explore the Mercedes-Benz showroom MORE: Why Mercedes-Benz isn't worried about losing sales battle with BMW in Australia Content originally sourced from:
7NEWS
5 days ago
- Automotive
- 7NEWS
Mercedes-Benz says 2035 ICE ban could ‘collapse' European auto industry
Mercedes-Benz CEO Ola Kallenius has told a German newspaper the European car industry is facing 'collapse' if the planned 2035 ban on the sale of new internal combustion engine-powered vehicles goes ahead. In the interview with Handelsblatt, the Mercedes-Benz boss spoke about the ICE ban, saying, 'We need to do a reality check, otherwise, we will drive full throttle against the wall.' He added that the European auto industry could 'collapse' if the 2035 ban on the sale of ICE-powered vehicles, which the European Union (EU) is due to review in the second half of this year, remains in place. Mr Kallenius is also the head of the European Automobile Manufacturers Association (ACEA), which has previously supported a 100 per cent reduction in carbon dioxide vehicle emissions, a 'de facto' ban on internal combustion engine sales, by 2035. CarExpert can save you thousands on a new car. Click here to get a great deal. It follows comments from Carlos Tavares, the previous CEO of Stellantis – owner of brands including Alfa Romeo, Maserati and Peugeot – who said the move would cause 'social consequences'. Australia doesn't have a national plan to ban sales of ICE vehicles, however the Australian Capital Territory (ACT) announced its own 2035 ban. The Mercedes-Benz boss, reports Handelsblatt, said a firm deadline on the sales ban of petrol and diesel internal combustion engines shouldn't be put in place. Mr Kallenius didn't call for more tariffs on imports, having previously suggested them as the 'crudest instrument' in dealing with increased competition from more affordable EVs, predominantly (but not only) from China, in Europe. Instead, he suggested greater incentives for consumers to buy electric vehicles (EVs) should be implemented, with cheaper electricity at charging stations, for example. '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,' Mr Kaellenius said. 'That's no use to our climate.' The comments came as the global auto industry faces headwinds from other factors, such as the impact of import tariffs into the US – the world's second-largest car market, and Mercedes-Benz's second biggest for passenger cars after China, too. 'Our industry is experiencing heavy rain, hail, storm and snow at the same time. Auto construction is a tough business, more than ever,' Mr Kallenius said. The Mercedes-Benz chief has admitted the automaker made mistakes in its approach to EVs, which saw it suspend sales of some electric models in the US due to slow sales. Mercedes-Benz sold 2.4 million vehicles in 2024, a fall of 4 per cent year-on-year, with a decline of 24 per cent for its EVs. In Australia, the brand is currently offering discounts of up to $70,000 on several electric models, and among its EVs only the EQB and EQE SUV have posted year-on-year increases so far in 2025. Mercedes-Benz is moving away from offering EVs with dramatically different styling and unique nameplates to its ICE models. EQ names are being phased out, and the brand is moving to a 'coherent' design language across its portfolio. Mercedes-Benz will launch a new mid-size electric SUV – the GLC with EQ Technology, which replaces the old EQC – at next month's IAA Mobility Show in the hometown of arch-rival BMW, which will reveal the rival BMW iX3 that will be the first of its 'Neue Klasse' generation of EVs.
Perth Now
5 days ago
- Automotive
- Perth Now
Mercedes-Benz says 2035 ICE ban could ‘collapse' European auto industry
Mercedes-Benz CEO Ola Kallenius has told a German newspaper the European car industry is facing 'collapse' if the planned 2035 ban on the sale of new internal combustion engine-powered vehicles goes ahead. In the interview with Handelsblatt, the Mercedes-Benz boss spoke about the ICE ban, saying, 'We need to do a reality check, otherwise, we will drive full throttle against the wall.' He added that the European auto industry could 'collapse' if the 2035 ban on the sale of ICE-powered vehicles, which the European Union (EU) is due to review in the second half of this year, remains in place. Mr Kallenius is also the head of the European Automobile Manufacturers Association (ACEA), which has previously supported a 100 per cent reduction in carbon dioxide vehicle emissions, a 'de facto' ban on internal combustion engine sales, by 2035. CarExpert can save you thousands on a new car. Click here to get a great deal. Supplied Credit: CarExpert It follows comments from Carlos Tavares, the previous CEO of Stellantis – owner of brands including Alfa Romeo, Maserati and Peugeot – who said the move would cause 'social consequences'. Australia doesn't have a national plan to ban sales of ICE vehicles, however the Australian Capital Territory (ACT) announced its own 2035 ban. The Mercedes-Benz boss, reports Handelsblatt, said a firm deadline on the sales ban of petrol and diesel internal combustion engines shouldn't be put in place. Mr Kallenius didn't call for more tariffs on imports, having previously suggested them as the 'crudest instrument' in dealing with increased competition from more affordable EVs, predominantly (but not only) from China, in Europe. Instead, he suggested greater incentives for consumers to buy electric vehicles (EVs) should be implemented, with cheaper electricity at charging stations, for example. Supplied Credit: CarExpert '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,' Mr Kaellenius said. 'That's no use to our climate.' The comments came as the global auto industry faces headwinds from other factors, such as the impact of import tariffs into the US – the world's second-largest car market, and Mercedes-Benz's second biggest for passenger cars after China, too. 'Our industry is experiencing heavy rain, hail, storm and snow at the same time. Auto construction is a tough business, more than ever,' Mr Kallenius said. The Mercedes-Benz chief has admitted the automaker made mistakes in its approach to EVs, which saw it suspend sales of some electric models in the US due to slow sales. Supplied Credit: CarExpert Mercedes-Benz sold 2.4 million vehicles in 2024, a fall of 4 per cent year-on-year, with a decline of 24 per cent for its EVs. In Australia, the brand is currently offering discounts of up to $70,000 on several electric models, and among its EVs only the EQB and EQE SUV have posted year-on-year increases so far in 2025. Mercedes-Benz is moving away from offering EVs with dramatically different styling and unique nameplates to its ICE models. EQ names are being phased out, and the brand is moving to a 'coherent' design language across its portfolio. Mercedes-Benz will launch a new mid-size electric SUV – the GLC with EQ Technology, which replaces the old EQC – at next month's IAA Mobility Show in the hometown of arch-rival BMW, which will reveal the rival BMW iX3 that will be the first of its 'Neue Klasse' generation of EVs. MORE: Explore the Mercedes-Benz showroom MORE: Why Mercedes-Benz isn't worried about losing sales battle with BMW in Australia
Yahoo
5 days ago
- Automotive
- Yahoo
Petrol ban has plunged Europe's car industry into crisis, says Mercedes
A looming ban on the sale of new petrol and diesel cars has plunged Europe's car industry into crisis, the boss of Mercedes-Benz has warned. Ola Kallenius has urged Brussels to urgently review the policy to avoid the sector's collapse, as he said carmakers are facing their bleakest-ever outlook. As well as the upcoming 2035 ban across the Continent, European carmakers are also battling Donald Trump's tariffs and heightened competition from cheaper Chinese rivals. Mr Kallenius told German newspaper Handelsblatt: 'We need to do a reality check. Otherwise, we'll drive full speed into the wall.' 'Of course we have to decarbonise but we must not lose sight of our economy.' He has called for looser net zero rules after the industry was caught up in the US president's trade war, which has culminated in a 15pc tariff on European cars being exported to the US. This is up from 2.5pc before Mr Trump re-entered the White House, but lower than the 27.5pc imposed after his April 2 'liberation day' tariffs announcement. Mr Kallenius said: 'The environment in which we operate is extremely complex at the moment. 'Our industry is experiencing heavy rain, hail, storms and snow at the same time. Car manufacturing is a tough business, more so than ever.' Mr Kallenius, who took over as chief executive in 2019, also pointed out that any deadline will simply rush motorists into buying petrol or diesel cars. 'That doesn't do the climate any good,' he said. His comments echo those of German rival BMW, which has also argued that the 2035 ban should be delayed. Oliver Zipse, BMW's chief executive, said in October that the date was 'no longer realistic' and could 'threaten the European automotive industry in its heart [leading] to a massive shrinking of the industry as a whole'. The latest intervention will no doubt also raise questions for the Labour Government, which reinstated the UK's 2030 ban on the sale of new petrol cars after coming to power. Weak demand for electric cars has already fuelled job losses across some of Britain's biggest manufacturers, including at Vauxhall owner Stellantis and Ford. Liam Butterworth, the boss of UK engineering giant Dowlais, recently urged Sir Keir Starmer to review the policy owing to the stuttering transition to electric vehicles (EVs). He said: 'This is an industry that has been heavily focused on combustion engines for many decades. It takes time to transition to an EV world, and the consumer needs to be ready as well.' It comes as Chinese manufacturers are rapidly taking market share from legacy European manufacturers. Chinese sales across 28 European countries surged 91pc in the first half of the year, reaching 5.1pc of the market, according to figures from Jato Dynamics. This has meant that Chinese brands now collectively outsell Mercedes in Europe. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
