Mercedes-Benz CEO Ola Källenius recently shared his concerns about the European Union’s plan to ban CO2-emitting vehicles by 2035, calling for a “reality check” due to potential economic risks for the European auto industry.
Starting in 2035, the EU has a plan to ban CO2-emitting vehicles, but Källenius wants the target reevaluated and has sounded the alarm in hopes of positively influencing the review coming up in the second half of this year.
Why Källenius is skeptical of the EU’s plan
Supporters of the ban say it is crucial for Europe to realize its green goals, but critics like Källenius argue it could make things worse for European carmakers who already have to deal with weak demand, Chinese competition, and poor electric vehicle sales.
Rather than an outright ban, Källenius has instead advocated for regular tax incentives and supply of low-cost power at charging stations to encourage more people to make the switch to electric vehicles.
“Of course we have to decarbonise, but it has to be done in a technology-neutral way. We must not lose sight of our economy,” he said.
“We need a reality check. Otherwise we are heading at full speed against a wall.”
Källenius noted that the car market is currently tougher than ever. He also argued that consumers could decide to buy cars with petrol or diesel engines ahead of the ban’s implementation, even if it stands.
The US restarts EV charger funding despite Trump’s objections
While the EU is focused on banning petrol or diesel engines by 2035, America continues to gradually roll out infrastructure that will ease the transition for its citizens.
The Trump administration has released new guidance that outlines how states may use federal funds to build electric car chargers, a move that comes after a federal court blocked an earlier attempt to freeze the program.
According to the US Department of Transportation, the guidelines will streamline applications and cut red tape to access the program’s $5 billion in funding for charging infrastructure that is set to wind down in 2026.
The updated policy gets rid of some earlier requirements, such as ensuring disadvantaged communities have access to EV chargers and promoting the use of union labor in installation.
The National Electric Vehicle Infrastructure program was part of the 2021 bipartisan infrastructure law enacted by President Joe Biden. However, the Federal Highway Administration in February suspended the program at the behest of Trump, who wanted to eliminate federal support for the wider adoption of EVs.
A federal court ruling in June blocked the suspension claiming the Transportation Department’s move had no such authority which means it had attempted to override the will of Congress.
Transportation Secretary Sean Duffy has said that while he doesn’t “agree with subsidizing green energy,” the will of Congress will be respected and they will make sure the program efficiently utilizes federal resources.
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