Mercedes-Benz CEO Ola Källenius has strongly criticized the internal combustion engine ban, which the European Union plans to implement in 2035. Källenius stated that if the ban is implemented in its current form, the European automobile market will suffer serious damage, saying, “We need a reality check. Otherwise, we will hit the wall at full speed.”

The internal combustion engine ban will damage the European market

Speaking to the German newspaper Handelsblatt, the Mercedes CEO stated that if the ban is approved after a review this year, the market will not be able to adapt to the decision. The statements came just after Mercedes-AMG announced the development of a new V8 engine.

While no production end date is planned for the engine developed by AMG, the company is basing this decision directly on customer demand. Gasoline engine options will not be limited to AMG models. It appears Mercedes will continue to offer internal combustion engines in its standard models for a long time to come.

While emphasizing the need to reduce carbon emissions, Källenius argued that this process should be conducted objectively, taking into account economic and technological realities. The CEO emphasized not only environmental but also economic sustainability, stating, “We must not lose sight of our economy.”

These statements align with Källenius’s assessment in June that manufacturers should continue to produce vehicles with both electric and internal combustion engines, without excluding any technology.

Mercedes-Benz previously announced its goal of transitioning to fully electric vehicle production by 2030. However, low demand for electric vehicles has led the company to reconsider this plan.

The strategy for the new era is based on creating a mixed product lineup that includes internal combustion engines. Källenius announced that 18 new models will be launched by 2027, half of which will be fully electric and the other half will feature different types of internal combustion engines. This period is being described as the busiest product launch period in Mercedes’ history.