The head of Mercedes-Benz, Ola Källenius, is calling for a reevaluation of the European Union’s planned ban on internal combustion engine (ICE) vehicles. In an interview with “Welt am Sonntag” and “Business Insider” Källenius emphasized the need for greater flexibility, arguing that hybrid and highly efficient ICE vehicles should remain part of the transition strategy. He cautioned that a rigid approach risks losing public acceptance and jeopardizing jobs within the automotive sector.
The EU aims to permit only vehicles without CO2 emissions – effectively electric vehicles – from 2035.
Källenius also highlighted concerns surrounding the value chain for electric vehicles, pointing to a need for political action. He noted the geographically dispersed nature of mining operations while acknowledging China’s near-monopoly on refining. He expressed disappointment at the lack of progress in establishing a European supply chain, predicting a growing dependence on China within less than a decade. He argued that while gas can be sourced elsewhere, securing processed raw materials essential for battery production is proving challenging.
Källenius offered a positive assessment of the German government’s economic policies, stating that maintaining the current pace of progress filled him with hope. Regarding the ongoing debate about reforming Germany’s social welfare system, Källenius stressed that economic growth and strength are crucial for achieving broader political objectives. He urged policymakers to prioritize growth as a foundation for funding other goals.
Ola Källenius has served as Chairman of the Board of Mercedes-Benz since 2019. He joined the Daimler Group in 1993 and has held various leadership roles over the years, including positions at McLaren’s performance and sports car brand AMG and within the passenger car sales division.