The boss of Mercedes-Benz has slammed the European Union over its plans to ban the sale of new petrol and diesel vehicles, warning that it could ruin the auto industry.
Speaking earlier today, Ola Kaellenius, CEO of Mercedes-Benz, criticised the decision to phase out vehicles with internal combustion engines in favour of electric cars.
It follows concerns from the wider industry that moving ahead with the move to outlaw petrol and diesel cars by 2035 could have a dramatic impact on sales.
**ARE YOU READING THIS ON OUR APP? DOWNLOAD NOW FOR THE BEST GB NEWS EXPERIENCE**
The European Union is planning to review the 2035 deadline before the end of the year, with many industry leaders making their feelings clear about the effect it could have.
The Mercedes CEO has warned that the EU's ban on petrol and diesel cars needs to be changed
|GETTY
Critics argue that the deadline of 2035 would hammer struggling European manufacturers even further.
At present, established Western brands are dealing with waning interest in electric cars, weak interest and strong competition from Chinese manufacturers.
Kallenius said: "We need a reality check. Otherwise, we are heading at full speed against a wall."
The 56-year-old told the German newspaper Handelsblatt that Europe's car market would "collapse" if the 2035 deadline were to go ahead.
He added: "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."
Kallenius said the ban on petrol and diesel cars would be counterintuitive as drivers would rush to buy vehicles with internal combustion engines.
The Swedish-German executive is currently serving as the head of the European auto lobby, the ACEA (European Automobile Manufacturers' Association).
He is calling for tax incentives for motorists, as well as cheaper charging prices at electric car charging stations to encourage the switch to EVs.
LATEST DEVELOPMENTS:
- Sadiq Khan to ban all cars from major tourist area as 'urgent action' impacts travel for millions
- Britons ditching petrol and diesel in favour of electric cars as Ford, BYD and Volkswagen sales soar
- Driving law changes to crack down on elderly motorists and drink-drivers are 'much overdue' - 'Sensible'
Mercedes-Benz had originally planned to have all newly launched architectures be electric-only from 2025 onwards.
It stated that it would be ready to go all-electric by the end of the decade, "where market conditions allow", although these plans have since been shelved.
Last year, the manufacturer said it would delay its electrification goal by five years, in addition to bolstering its range of combustion engine models.
Mercedes now expects sales of electrified vehicles, including hybrids, to account for up to 50 per cent of the total by 2030.
Mercedes CEO Ola Kallenius warned that the 2035 petrol and diesel car ban could have disastrous consequences
|MERCEDES-BENZ AG
In its recent outlook, the company said it is expecting to see revenue "significantly below" the prior year as a result of lower sales.
In the second quarter of 2025, Mercedes sold just over 100,000 electrified cars and vans, with only 42,000 being battery electric vehicles.
Electrified vehicles, including battery electric and plug-in hybrids, made up 20.7 per cent of unit sales in Q2, a slight improvement compared to the 18.1 per cent seen in the year prior.
Mercedes-Benz has sold 54,416 cars in the UK so far this year, worth 4.6 per cent of the market. This is an 8.3 per cent drop compared to last year, when it had registered almost 60,000 new vehicles.