GBAF Logo
Mercedes Benz CEO: current EU rules have not spurred intended shift away from combustion engines - Finance news and analysis from Global Banking & Finance Review
Finance

Mercedes Benz CEO: current EU rules have not spurred intended shift away from combustion engines

Published by Global Banking & Finance Review

Posted on May 13, 2026

1 min read

· Last updated: May 13, 2026

Add as preferred source on Google
Finance Automotive Markets

EU Combustion Engine Ban Failing to Prompt Electric Vehicle Shift, Says Mercedes CEO

Mercedes CEO Criticizes Effectiveness of EU Combustion Engine Ban

BRUSSELS, May 13 (Reuters) - Current European Union rules such as an outright ban on internal combustion car engines in 2035 have not spurred the intended shift to electric vehicles, Mercedes Benz Chief Executive Ola Kallenius said on Wednesday.

Concerns Over 2035 Emissions Legislation

• It is obvious the legislation on 2035 emissions put in place in 2020 has some flows, he said.

Need for Pragmatic Policymaking

• Policymakers have to be pragmatic, they cannot ignore market forces.

Competitive Automotive Market and Chinese Manufacturers

• The automotive industry is one of the most competitive and Chinese auto makers are adding intensity to the market.

(Reporting by Julia Payne and Inti Landauro, Editing by Louise Heavens)

Key Takeaways

  • The 2035 ban, enacted in 2020, contains flaws—its rigidity hasn’t accelerated EV adoption as planned
  • Legislation must reflect market realities: policymakers should balance climate goals with economic and competitive dynamics
  • EU automakers face fierce competition—especially from Chinese rivals—underscoring the need for a technology‑neutral regulatory approach

Frequently Asked Questions

What did the Mercedes Benz CEO say about EU combustion engine rules?
He stated that current EU rules, such as the 2035 ban, have not spurred the intended shift to electric vehicles.
Why does the Mercedes Benz CEO believe the EU legislation has flaws?
He mentioned that the 2035 emissions legislation, put in place in 2020, has some flaws and that policymakers need to be pragmatic.
How does competition in the automotive industry affect the shift to EVs?
The CEO noted that the automotive industry is highly competitive, with increased intensity from Chinese automakers.
What recommendation did Ola Kallenius give to policymakers?
He advised policymakers not to ignore market forces and to be pragmatic in their decisions.

Tags

Related Articles

Image for Dollar at one-week high on Middle East uncertainty, hot US inflation

Dollar at one-week high on Middle East uncertainty, hot US inflation

Image for Ukraine says it struck Russian oil, gas infrastructure

Ukraine says it struck Russian oil, gas infrastructure

Image for SMA Solar sales rise as Europe turns to rooftop panels

SMA Solar sales rise as Europe turns to rooftop panels

Image for German court rules Milka chocolate bar weight cut misleading

German court rules Milka chocolate bar weight cut misleading

Image for Europe set for easier train journeys as EU unveils single-ticket plan

Europe set for easier train journeys as EU unveils single-ticket plan

Image for Trump's designs on Greenland prod investment, tourism likely to pay off faster than mines

Trump's designs on Greenland prod investment, tourism likely to pay off faster than mines

More from Finance

Explore more articles in the Finance category

Image for UK parliamentary watchdog to investigate Nigel Farage over $7 million gift, BBC says
UK parliamentary watchdog to investigate Nigel Farage over $7 million gift, BBC says
Image for Kremlin says Russia can do business with US if it stops linking trade to Ukraine
Kremlin says Russia can do business with US if it stops linking trade to Ukraine
Image for Britain's government to update banks' ring-fencing regime
Britain's government to update banks' ring-fencing regime
Image for UK stocks muted as Starmer leadership crisis rattles investor sentiment
UK stocks muted as Starmer leadership crisis rattles investor sentiment
Image for Humanoid to deploy up to 2,000 robots at Schaeffler plants
Humanoid to deploy up to 2,000 robots at Schaeffler plants
Image for Britain to legislate to tackle threats from hostile state proxies
Britain to legislate to tackle threats from hostile state proxies
Image for ABN Amro CEO says loan growth can withstand rate hikes
ABN Amro CEO says loan growth can withstand rate hikes
Image for KKCG alerts Italy to possible rule breaches at Ferretti ahead of board vote
KKCG alerts Italy to possible rule breaches at Ferretti ahead of board vote
Image for Nebius reports higher quarterly capex on AI cloud expansion
Nebius reports higher quarterly capex on AI cloud expansion
Image for Factbox-King's Speech: A guide to Starmer government's new proposed laws
Factbox-King's Speech: A guide to Starmer government's new proposed laws
Image for Factbox-What are the main policy plans of Hungary's new government?
Factbox-What are the main policy plans of Hungary's new government?
Image for Britain to strengthen ties with the EU in new legislation
Britain to strengthen ties with the EU in new legislation
View All Finance Posts