The CEO of Mercedes-Benz, Ola Källenius, is calling for a reconsideration of the European Union’s planned combustion engine ban. Speaking to “Welt am Sonntag” and “Business Insider” Källenius argued that greater flexibility is needed, emphasizing the role of hybrid vehicles and highly efficient combustion engines in the transition to electric mobility. He warned that the current trajectory, aiming for a complete phase-out of combustion engines by 2035, risks jeopardizing public acceptance and potentially leading to significant job losses.
Källenius also highlighted deficiencies in the EU’s strategy for the electric vehicle value chain. He pointed out that from raw material extraction to battery cell production, numerous critical stages are still heavily reliant on external sources. Specifically, he noted the global distribution of mines and China’s near-monopoly control over refining processes. He expressed concern that Europe is not adequately developing its own value chain and that continued reliance on foreign sources, particularly China, will create strategic vulnerabilities. He suggested diversifying gas purchases but acknowledged the difficulty in securing alternative suppliers for processed raw materials crucial for battery production.
Despite these concerns, Källenius offered a positive assessment of the German government’s economic policies, stating he remains hopeful if the current pace of progress is maintained. Addressing ongoing discussions surrounding reforms to Germany’s social welfare system, he underscored the importance of economic growth and strength as the foundation for achieving other political objectives. He believes prioritizing growth is the necessary response given Germany’s current economic situation.
Ola Källenius has served as Chairman of the Executive Board of Mercedes-Benz since 2019. He joined the Daimler Group in 1993, progressing through various leadership roles, including positions within McLaren, the AMG performance car brand and the passenger car sales division.
