Overview

• Ola Källenius cautioned that enforcing a 2035 ban on new petrol and diesel sales could precipitate a market collapse, saying Europe was “driving full speed into the wall.”
• He argued that decarbonization must follow a technology-neutral path and rejected setting a firm date for phasing out combustion engines.
• Mercedes is pressing the EU to adopt demand-side incentives—such as lower charging costs and tax breaks—to encourage a gradual shift to electric vehicles.
• BMW CEO Oliver Zipse has echoed these concerns, warning the 2035 deadline is unrealistic and risks a significant contraction of Europe’s auto industry.
• The EU’s zero-CO2 sales mandate remains in force but is under review as member states, including the UK with its own 2030 cutoff, seek transitional flexibility.