Mercedes CEO says details of EU’s relaxed EV targets could negate benefits
STUTTGART, Jan 29 (Reuters) – The fine print of the European Union’s relaxed targets for the transition to electric cars risks canceling out expected benefits, the CEO of Mercedes-Benz said on Thursday.
The European Commission presented public proposals in December to reverse an effective ban on the sale of new cars with internal combustion engines from 2035, bowing to pressure from Germany, Italy and major carmakers including Mercedes.
“The door is slightly open at the moment,” Mercedes CEO Ola Kaellenius said in Stuttgart ahead of the launch of the premium carmaker’s new S-Class, with which he hopes to regain momentum after a difficult 2025.
But the restrictions could “negate the benefits”, Kaellenius, who is also president of the European automobile association ACEA, told reporters.
Automakers will still be able to sell plug-in hybrids and range extenders beyond an initial 2035 deadline, while closing the CO2 reduction gap with low-carbon steel and the use of more sustainable fuels.
The plan, which requires approval from EU member states, also includes binding electrification targets for corporate fleets, based on GDP per capita.
“There is a big risk that the market will contract along the way,” Kaellenius said.
(Reporting by Ilona Wissenbach, writing by Rachel More, editing by Alexander Smith)
