- Mercedes CEO Issues Stark Warning About the Future
- Numbers Reveal a Wide Gap Between Ambition and Reality
- Possible Review of the Combustion Engine Ban
- The Future of the European Auto Industry Between Ambition and Reality
The European automotive industry is standing at a critical crossroads as pressure mounts to accelerate the shift toward fully electric vehicles. Just a few years ago, this transition was seen as an ambitious roadmap shaping the future of mobility across the continent. But a recent statement from the CEO of Mercedes has cast serious doubt on that vision. He warned that a complete phase out of combustion engines could drive the European car industry to collapse within the next decade.
Mercedes CEO Issues Stark Warning About the Future
In an interview with the German newspaper Handelsblatt, Ola Källenius, CEO of Mercedes and president of the European Automobile Manufacturers Association (ACEA), warned that the European Union’s plan to ban the sale of new combustion engine cars starting in 2035 poses an existential threat to the industry.
Källenius stated:
“We need a reality check. Otherwise, we are heading full speed into a wall.”
“Of course we must reduce carbon emissions, but it has to be done in a technologically neutral way.”
“If the ban goes ahead, consumers will rush to buy gasoline and diesel cars before the deadline, and that will not help the climate at all.”
This surprising stance from Mercedes highlights the growing concern within the automotive industry about the rapid pace of change being imposed without fully considering the readiness of markets and consumers.
Numbers Reveal a Wide Gap Between Ambition and Reality
Despite the European Union’s goal of achieving 100% electric vehicle sales by the middle of the next decade, the current figures show a very different picture.
In the first half of this year, fully electric cars accounted for only 17.5% of total sales across the EU, the United Kingdom, and the European Free Trade Association countries (Iceland, Liechtenstein, Norway, Switzerland).
Plug in hybrids reached just 8.7% of the market.
Traditional hybrids held a 35% share, although this figure includes mild hybrid systems that many experts argue are not true hybrids.
For Mercedes itself, the numbers are even more concerning. The brand’s share of fully electric cars dropped to 8.4% of global deliveries in the first half of 2025, down from 9.7% during the same period in 2024. Even when including plug in hybrids, electrified models made up only 20.1% of sales in the first six months of this year.
These figures highlight a stark gap between Europe’s ambitious targets and real market demand, raising serious doubts about the industry’s ability to meet the planned combustion engine ban on time.
Possible Review of the Combustion Engine Ban
Although the European Union has set a goal of achieving zero emissions for new cars by 2035, the decision is still under review in the coming months.
The European Commission confirmed in March its commitment to the zero emissions target.
It also announced plans to accelerate the review of CO₂ emission standards for cars and light trucks.
This could open the door to a reassessment of the ban earlier than expected.
At the same time, global demand for electric vehicles is slowing, not only in Europe but also in key markets such as China and the United States. With growing competition and rising production costs, the future of a full transition to electric vehicles is becoming increasingly uncertain.
The Future of the European Auto Industry Between Ambition and Reality
Mercedes’ latest statements highlight a clear tension between the European Union’s political vision and the practical realities of the automotive sector. While regulations are pushing for a complete shift to electric vehicles, automakers are struggling to keep pace as sales slow and many consumers continue to favor gasoline and diesel models.
The real question now is whether Europe will reconsider its decision and adopt a more flexible approach that balances climate goals with the survival of the industry, or push ahead at full speed toward a future that could undermine one of the continent’s most vital economic pillars.
