Mercedes-Benz CEO Calls for EU to Rethink EV Sales Strategy

Mercedes-Benz CEO Ola Kaellenius has called on the European Commission to recognize lagging electric vehicle sales are due to weak demand, rather than supply issues, urging the removal of fines targeting the auto sector. The ACEA president emphasizes dialogues for EU competitiveness.

Mercedes-Benz CEO Ola Kaellenius has urged the European Commission to acknowledge that the sluggish electric vehicle (EV) sales in the European Union stem from weak demand and not supply constraints. He called for the abolition of potential fines threatening the auto industry.

As the European bloc's carmakers struggle to compete with Chinese competitors and prepare for potential U.S. tariffs after President-elect Donald Trump's inauguration, they also face possible EU fines up to 15 billion euros if they fail to meet the CO2 emission targets set for 2025. Kaellenius, now president of the European Automobile Manufacturers' Association (ACEA), outlined an industry wish list ahead of a 'strategic dialogue' planned by the EU executive with various stakeholders.

This dialogue aims to bolster the competitiveness of automotive manufacturing in Europe, amidst job cuts and market challenges. Kaellenius emphasized the necessity of initiating this dialogue promptly and proposed that the EU explore opportunities for a 'grand bargain' with Trump to avert a trade war.

(With inputs from agencies.)