Mercedes Boss Thinks the EU Should Drop Emissions Fines

Last year was tough for electric cars in Europe. Despite new, cheaper models hitting the market, EV registrations fell by 6% compared to 2023, InsideEVs reports. This contrasts sharply with rising sales in the U.S. and China.

Adding to the challenge, European automakers now face fines if their average carbon dioxide emissions don’t meet stricter limits starting this year.

These fines are part of the European Green Deal, aiming to cut greenhouse gas emissions by 55% by 2030 and to achieve net-zero emissions by 2050. This plan includes banning new combustion-powered cars from 2035.

Not everyone is happy about these changes. Ola Kallenius, CEO of Mercedes-Benz and head of the European Automobile Manufacturers’ Association (ACEA), sent an open letter to the European Commission and Parliament.

He asked for the fines to be dropped, saying they would hurt the industry and take away funds needed for research and development to make EVs more affordable.

Kallenius argued that automakers need to avoid fines to keep investing in new technology. He said, ‘The automotive industry needs to know how to reduce the risk of non-compliance. Penalties for CO2 could divert essential funds from R&D.’

He also mentioned that the drop in EV sales isn’t due to a lack of options. Instead, he called for a ‘reality check’ on the Green Deal to make it more flexible and to help make decarbonization a profitable business.

He suggested more incentives and cooperation with energy companies and tech firms to boost EV sales.

Despite the criticism, Kallenius made it clear that European carmakers still support the 2050 climate goals and the move to zero-emission transportation. ‘The EU auto industry is committed to the 2050 climate neutrality goal,’ he said, but stressed that the strategy should promote growth and competitiveness.

Have something to add? Let us know in the comments below!