Cars

Mercedes-Benz CEO Urges Europe to Reconsider Internal Combustion Engine Ban

This article explores Mercedes-Benz CEO Ola Källenius's urgent appeal to the European Union to rethink its impending 2035 ban on internal combustion engine vehicles, highlighting the potential economic fallout and the need for a more pragmatic approach to carbon neutrality amidst evolving global realities.

A Critical Juncture for Europe's Automotive Future

Mercedes Chief Sounds Alarm on EU's 2035 Engine Ban

Just weeks after expressing serious concerns about the direction of Europe's car industry, the CEO of Mercedes-Benz, Ola Källenius, has intensified his call for the European Union to reconsider its 2035 prohibition on new internal combustion engine (ICE) vehicle sales. He previously warned in a German newspaper that the EU was on a collision course, potentially leading to the industry's \"collapse\" without a vital \"reality check.\"

Automotive Leadership's Unified Plea for Policy Revision

In his capacity as the President of the European Automobile Manufacturers' Association (ACEA), Källenius penned an open letter to European Commission President Ursula von der Leyen. The letter asserts that the global landscape has significantly transformed since the ban was initially conceived, rendering its premise outdated. Joined by Matthias Zink, President of the European Association of Automotive Suppliers (CLEPA), Källenius criticized the stringent CO2 targets for cars and vans, stating that achieving zero emissions by 2035 is no longer a viable or realistic objective.

A Glimmer of Hope: Upcoming Dialogue and Potential Policy Shift

Despite the challenges, Källenius perceives an opportunity for the EU to alter its course in the near future. He anticipates a crucial Strategic Dialogue on September 12, where discussions could potentially lead to a re-evaluation or postponement of the ban. While ACEA members remain steadfast in their commitment to achieving carbon neutrality by 2050, they contend that phasing out combustion engines by 2035 is premature and detrimental.

Divergent Industry Perspectives on the Path to Electrification

The automotive sector is not entirely unified on this matter. For example, Kia's European head, Marc Hedrich, conveyed to Automotive News that rescinding the ban would be financially detrimental for his company. He noted Kia's substantial investment in electric vehicle development, suggesting that a slowdown in EV adoption to preserve gasoline models would negatively impact profitability. Although Kia is not an ACEA member, its parent company, Hyundai, is part of the association's 16-member roster.

Navigating Tightening Emissions Standards and Regulatory Pressures

Earlier this year, the EU reaffirmed its 2035 ban while providing some flexibility by allowing automakers to average CO2 emissions over the 2025-2027 period, rather than imposing strict annual limits. Nevertheless, new targets for 2025-2029 mandate a 15 percent reduction compared to 2021-2024 levels, requiring fleets to average 93.6 g/km. Beyond 2030, the target drops further to 49.5 g/km, culminating in a zero g/km mandate from 2035, effectively compelling carmakers to exclusively sell electric vehicles if the ban remains in effect. These increasingly stringent regulations are creating significant operational challenges across the industry. Stellantis, an ACEA member, reported that regulatory compliance alone consumes a quarter of its engineering resources, yielding no added value.

Global Ramifications of Europe's Automotive Policy

The ultimate decision regarding the 2035 ban will ripple far beyond the EU's 27 member states, influencing global product strategies. Forcing automakers to abandon ICE sales in such a vital market could undermine economies of scale, potentially rendering certain gasoline-powered models economically unfeasible and leading to their complete discontinuation.

Winter Chill Grips Northern India, Dense Fog Disrupts Daily Life

Northern India finds itself in the throes of a severe winter, characterized by plummeting temperatures and widespread dense fog. This climatic shift has cast a noticeable impact on everyday life, causing significant disturbances across various sectors. The prevailing cold wave, coupled with reduced visibility due to persistent fog, has particularly hampered transportation networks, necessitating vigilance and preparedness from the populace. Furthermore, the meteorological department anticipates the continuation of these challenging conditions, urging residents to adopt necessary precautions to navigate the harsh winter.

The intense cold spell sweeping across Northern India has led to a significant drop in mercury levels, bringing with it a thick blanket of fog that has enveloped vast regions. This has resulted in a substantial reduction in visibility, posing considerable challenges for commuters and impacting the regular flow of life. The adverse weather has not only affected ground and air travel but has also altered the daily rhythm of communities, prompting a collective effort to adapt to the prevailing conditions. As the region braces for an extended period of this severe weather, the emphasis remains on safety and resilience amidst the chilling embrace of winter.

The Onset of Winter's Grip and Its Immediate Repercussions

Northern India is currently experiencing a significant dip in temperatures, marked by dense fog and cold wave conditions. This weather pattern has led to considerable disruptions, affecting visibility, transport services like trains and flights, and the overall daily routines of residents. The India Meteorological Department forecasts these conditions to persist, emphasizing the need for precautionary measures among the populace.

The advent of winter has brought a severe cold wave to North India, with temperatures dropping considerably across the region. This climatic shift is primarily characterized by the formation of dense fog, particularly during morning and evening hours, which drastically reduces visibility. Such conditions have had a cascading effect on various aspects of daily life. Transportation networks, including railway and aviation services, have faced significant delays and cancellations, disrupting travel plans for thousands. Commuting on roads has become hazardous due to poor visibility, leading to increased caution among drivers. Furthermore, the biting cold has altered the daily routines of inhabitants, compelling them to seek warmth indoors and impacting outdoor activities. The India Meteorological Department's continued warnings about the persistence of these harsh conditions underscore the importance of public awareness and the implementation of appropriate safety measures to mitigate the challenges posed by this severe winter.

Navigating Through Reduced Visibility and Daily Life Adjustments

Northern India is currently experiencing a significant dip in temperatures, marked by dense fog and cold wave conditions. This weather pattern has led to considerable disruptions, affecting visibility, transport services like trains and flights, and the overall daily routines of residents. The India Meteorological Department forecasts these conditions to persist, emphasizing the need for precautionary measures among the populace.

The pervasive dense fog and the biting cold wave have compelled the residents of North India to make significant adjustments to their daily lives. The diminished visibility, a direct consequence of the thick fog, has not only made travel perilous but has also necessitated a shift in the timing and nature of outdoor activities. Schools and educational institutions often face decisions regarding closures or delayed starts, impacting students' schedules. Businesses that rely on clear weather conditions, such as outdoor vendors or construction sites, experience setbacks. The elderly and young children are particularly vulnerable to the cold, leading families to take extra precautions to ensure their well-being, including wearing multiple layers of warm clothing and limiting exposure to the elements. The continuous advisories from the meteorological department serve as a crucial guide for the public, informing them about the evolving weather patterns and suggesting ways to cope with the challenges, ranging from adjusting travel plans to ensuring adequate heating in homes, thereby fostering a collective effort to adapt to the ongoing winter conditions.

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European Automakers Challenge Feasibility of Combustion Engine Ban

Europe's prominent car manufacturers are raising significant concerns about the practicality of the European Union's ambitious plan to discontinue internal combustion engines. They contend that the stringent environmental regulations, particularly the CO2 emission targets for 2030 and 2035, are not viable under current global industrial and geopolitical conditions. Industry leaders emphasize the need for a revised strategy that balances climate objectives with the protection of Europe's industrial competitiveness, social stability, and the resilience of its supply chains, while also considering various powertrain technologies beyond solely electric vehicles.

In a joint communique, the heads of the European Automobile Manufacturers' Association (ACEA) and the European Association of Automotive Suppliers (CLEPA) conveyed their apprehensions directly to European Commission President Ursula von der Leyen. They highlighted that the European automotive sector is being asked to undergo a profound transformation with significant disadvantages. Key issues cited include escalating production expenses, almost complete dependence on Asian nations for battery components, and the uneven rollout of electric vehicle charging facilities across the continent. Furthermore, the industry points to external factors, such as former U.S. President Trump's tariff policies on imported automobiles, as contributing to their challenging predicament.

Ola Källenius, CEO of Mercedes and President of ACEA, alongside Matthias Zink, an executive at Schaeffler and President of CLEPA, articulated in their letter that Europe's automotive transformation blueprint must move beyond theoretical ideals and instead acknowledge current industrial and geopolitical realities. They asserted that meeting the rigid CO2 targets for cars and vans by 2030 and 2035 is simply unattainable in the present climate. Their recommendation is to recalibrate the existing CO2 reduction pathway for road transportation, ensuring it aligns with the EU's climate objectives while simultaneously safeguarding the continent's industrial strength, social cohesion, and the strategic robustness of its supply chains.

A critical mismatch exists between Europe's environmental aspirations and the difficulties faced by its largest manufacturing sector. Similar to their North American counterparts, most European carmakers rely heavily on their internal combustion engine vehicle sales for revenue, making a rapid shift to new technologies a significant hurdle. While some European automotive giants, including Mercedes under Ola Källenius's leadership, have launched electric models, the letter notes that only a small percentage of vehicles on European roads are currently battery-powered: approximately 15% of passenger cars, 9% of vans, and 3.5% of trucks, with adoption rates varying widely across member states.

Industry executives further pointed out that despite some European markets showing increasing adoption of battery-powered vehicles, a substantial portion of consumers remains hesitant to transition to alternative powertrains. They proposed that "more ambitious, long-term, and consistent demand-side incentives" are necessary. Additionally, promoting a diverse range of drivetrain technologies, including hybrid and plug-in hybrid options, alongside fully electric vehicles, could effectively help the EU achieve its environmental goals.

The emphasis on technology neutrality as a core regulatory principle is crucial, according to the automotive associations, as it would ensure that all available technologies can contribute to decarbonization efforts. While electric vehicles are expected to lead the transition, they stress the importance of allowing space for plug-in hybrids, range-extended vehicles, highly efficient internal combustion engine vehicles, hydrogen-powered vehicles, and those utilizing decarbonized fuels. They believe that better utilization of transitional technologies, such as plug-in hybrid electric vehicles, will be vital for meeting decarbonization objectives, engaging consumers in the green transformation, and catering to export markets where demand for these technologies is projected to remain strong.

This appeal from the automotive sector follows a recent amendment by the European Commission to the 2025 CO2 emission reduction targets on May 8, granting carmakers additional time to comply. This decision has drawn criticism from environmental groups like the International Council on Clean Transportation (ICCT). ICCT Europe Director Peter Mock commented that such ad-hoc target adjustments create uncertainty among industry stakeholders and convey a negative message to consumers, potentially hindering the accelerating electric car market. However, a major underlying motivation for automakers' resistance to this framework is financial, as evidenced by significant profit declines reported by companies such as the Volkswagen Group in Q2 2025, despite increased sales, highlighting the economic strain of the current transition.

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