Economy

Mercedes chief urges reality check on EU’s green transition

Photo: Sven Hoppe/dpa via Reuters Connect, photo editor: Adelina Mamedova

Europe’s carmakers face pressure from all sides: shrinking sales, rising energy costs and fierce international rivals. Mercedes-Benz boss Ole Källenius, who heads the European car industry association ACEA, warns that the EU’s green agenda risks undermining the auto industry unless it adopts a more pragmatic approach to reaching zero emissions.

In an interview with Euronews, Källenius emphasized his commitment to electric cars, pointing to the significant investments by carmakers and the availability of hundreds of EV models. Yet, he urges policymakers to ground climate targets in current market and infrastructure realities, not just ambition.

He says the transition to electric cars faces significant obstacles, including high energy prices, insufficient charging stations, weak incentives for buyers and an overloaded power grid. Solving these requires collaboration among carmakers, governments and energy providers.

Källenius also urges the EU to broaden its approach. He seeks a plan that addresses climate change while maintaining the strength and job security of the European auto industry. He calls on EU authorities for clearer regulations, effective long-term incentives and fair policies for all technologies.

«Europe must see the bigger picture — we need to address climate change, but also remain economically strong and independent,» he underscored.