Mercedes CEO says details of EU's relaxed EV targets could negate benefits

Reuters

Thu, January 29, 2026 astatine 11:48 AM CST 1 min read

STUTTGART, Jan 29 (Reuters) - The good people of the European Union's relaxed targets successful the ​shift to electrical cars risks cancelling retired the ‌intended benefits, the CEO of Mercedes-Benz said connected Thursday.

The European ‌Commission made nationalist proposals successful December that reverse an effectual prohibition connected income of caller interior combustion motor cars from 2035, bowing to unit from Germany, Italy ⁠and large automakers ‌including Mercedes.

"The doorway has been opened somewhat for now," Mercedes CEO Ola Kaellenius ‍said successful Stuttgart up of the motorboat of the premium carmaker's revamped S-class series, with which it hopes to regain ​momentum aft a hard 2025.

But the restrictions could ‌cancel retired the benefits, Kaellenius, who besides serves arsenic president of the ACEA European automotive association, told reporters.

Automakers volition inactive beryllium capable to merchantability plug-in hybrids and scope extenders beyond an archetypal cut-off day ⁠of 2035, portion making up ​the CO2 simplification shortfall with ​lower-carbon alloy and the usage of much sustainable fuels.

The plan, which requires EU subordinate states' ‍approval, besides ⁠foresees binding electrification targets for firm fleets based connected GDP per capita.

"There is simply a large hazard ⁠that the marketplace volition shrink connected the mode there," Kaellenius ‌said.

(Reporting by Ilona Wissenbach, Writing by Rachel More, ‌Editing by Alexander Smith)