Mercedes-Benz CEO Ola Källenius is the eternal optimist, and for good reason. He has long pushed the European Union to roll back its lofty goal of phasing out new internal combustion engine cars, arguing that weakening the rules was a return to pragmatism and not capitulation to opponents of Europe’s green agenda.
His push is working. The rigid deadlines for phasing out combustion engines after 2035 are “no longer feasible,” Källenius told The Verge in a recent interview, given infrastructure bottlenecks and the sluggish adoption of EVs by consumers. More flexibility was needed to protect jobs and competitiveness, give consumers greater choice, and ensure manufacturers can finance the transition profitably.
“This is not a retreat,” he said in defense of loosening the 2035 deadline. “It is an upgrade to a smarter strategy that matches Europe’s ambitions with a thoughtful plan for success.”
“This is not a retreat.”
When the economy was humming and jobs were plentiful, Europeans largely backed an ambitious climate agenda. Now, with the economy limping and automakers and suppliers slashing tens of thousands of jobs, support has shifted toward slowing down the transition.
Källenius said that carmakers had proved their commitment to fighting global warming with a decade of huge investments in new technology, electric vehicles, and battery plants.
“Taking a more pragmatic approach could be a way of delivering on Europe’s climate goals more effectively,” he said. “The ultimate target of achieving CO 2 neutrality in the EU by 2050 remains firmly in place. What changes is the path to get there.”
Cars from the vehicle manufacturer Mercedes-Benz are parked in front of a car dealership. Image: Getty
Reopening the ICE car ban
For now, it is still European law to ban the sale of new cars with internal combustion engines after 2035. To change that, the EU has to either repeal the law or to amend it and create exceptions that would allow the sale of conventional cars to continue beyond the deadline.
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