Driving the news: Mercedes-Benz CEO Ola Källenius is warning that Europe's car industry will likely suffer if the EU sticks with its plan to ban new gas and diesel cars by 2035.
For context: Back in 2021, Mercedes projected it would stop selling combustion engines by 2030 "where market conditions allow,” but the company has now abandoned that goal entirely.
Källenius told German newspaper Handelsblatt that the industry needs "a reality check" or it's heading "at full speed against a wall."
Electric cars hit just 17.5% of European sales in the first half of this year, far short of the 100% target for 2035.
Why it matters: What looked like an inevitable trajectory just a few years ago now feels like a policy-driven maze, especially as Chinese automakers eat European market share with cheaper electric vehicles.
Bottom line: Källenius is betting that the upcoming review will force Brussels to face reality and either delay the ban or allow more flexibility for combustion engines.
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