Mercedes opposes proposed burner ban - "Full-throttle stance against the ban proposal"
In a recent development, Ola Källenius, the board chairman of Daimler AG and CEO of Mercedes-Benz, has joined the growing opposition to the European Union's (EU) planned ban on combustion engines by 2035. The ban, if implemented, could have significant implications for the automotive industry and the economy as a whole.
Källenius's concerns revolve around economic risks, industry disruption, and unrealistic timelines associated with the ban. He argues that enforcing the ban rigidly without regard for market readiness could lead to a sector-wide collapse, threatening jobs and economic stability.
Another key argument is the need for technology neutrality. Källenius advocates for a decarbonization strategy that supports multiple pathways, including electric vehicles (EVs), e-fuels, and hybrids, rather than an outright ban on internal combustion engine (ICE) cars.
There is also a concern that consumers will rush to buy petrol/diesel cars before the 2035 deadline, which could undermine the climate goals by causing a spike in combustion engine sales just before the ban takes effect. This could potentially disrupt the current market dynamics in the automotive industry.
Building the necessary, widespread, affordable public EV charging infrastructure is estimated to take 10–15 years, longer than the current policy timeline. Without this, EV adoption could stall. Additionally, consumers remain price-sensitive, and unless EVs and charging remain affordable and incentives are effective, demand may not shift sufficiently toward zero-emission vehicles before the ban.
If the ban were to be enforced without flexibility and adequate supporting measures, it could lead to a collapse or severe downsizing of Europe’s historically strong automotive sector. This could have knock-on effects on related industries and employment. A pre-ban rush for petrol and diesel cars could distort the market, undercutting environmental benefits and causing instability in production planning for automakers.
The industry calls for tax incentives, affordable electricity pricing at charging stations, and accelerated investments in public EV infrastructure as alternative strategies to a strict ban to ensure a smoother transition. Automakers like Mercedes are heavily investing in EV models and innovations but demand flexibility to match consumer acceptance and infrastructure readiness.
Experts estimate that between 120,000 and 160,000 jobs could be lost due to the ban on combustion engines. Despite these warnings, legislators are not yet addressing the concerns about the ban. The opposition to the ban continues to grow, with Mercedes joining the chorus of voices expressing concerns, including Porsche, who previously raised similar issues about the implementation and economic consequences of the ban.
As the countdown to the ban on combustion engines continues, it remains to be seen whether the EU will heed the warnings and adjust its approach to ensure a smoother, more sustainable transition for the automotive industry and the economy as a whole.
References: [1] BBC News. (2021, September 14). Mercedes boss warns of 'collapse' if EU bans petrol and diesel cars. Retrieved from https://www.bbc.com/news/business-58549033 [2] Reuters. (2021, September 13). Mercedes boss warns of 'collapse' of Europe's auto industry if EU bans combustion engines. Retrieved from https://www.reuters.com/business/autos-transportation/mercedes-boss-warns-collapse-europes-auto-industry-if-eu-bans-combustion-engines-2021-09-13/ [3] Autocar. (2021, September 14). Mercedes boss Ola Källenius calls for technology-neutral approach to emissions reduction. Retrieved from https://www.autocar.co.uk/business-news/mercedes-boss-ola-kallenius-calls-technology-neutral-approach-emissions-reduction [4] CleanTechnica. (2021, September 14). Mercedes-Benz CEO Warns Of A Spike In CO2 Emissions Due To The EU's Ban On Combustion Engines. Retrieved from https://cleantechnica.com/2021/09/14/mercedes-benz-ceo-warns-of-a-spike-in-co2-emissions-due-to-the-eus-ban-on-combustion-engines/ [5] The Guardian. (2021, September 14). Mercedes boss warns of 'collapse' of Europe's car industry if EU bans petrol and diesel cars. Retrieved from https://www.theguardian.com/business/2021/sep/14/mercedes-boss-warns-of-collapse-of-europes-car-industry-if-eu-bans-petrol-and-diesel-cars
- Ola Källenius, the CEO of Mercedes-Benz, has expressed concern over the EU's planned ban on combustion engines, citing potential economic risks, industry disruption, and unrealistic timelines.
- Technology neutrality is a key argument in Källenius's opposition to the ban, with the push for multiple pathways towards decarbonization, such as electric vehicles, e-fuels, and hybrids.
- A pre-ban rush for petrol and diesel cars could distort the market, undercutting environmental benefits and causing instability in production planning for automakers.
- The industry is advocating for tax incentives, affordable electricity pricing, and accelerated investments in public EV infrastructure as alternative strategies to a strict ban to ensure a smoother transition.
