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EMISSIONS: Mercedes Urges EC to Address EV Demand Shortfall, Emission Fines

EMISSIONS
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Mercedes-Benz CEO Ola Kaellenius has called on the EC to address falling EV demand, warning that automakers risk billions in fines under stringent CO2 emission rules unless policies shift to support green investments and industry competitiveness, according to the automaker cited by Reuters.

  • Automakers in the EU face potential fines of up to €15bn by 2025 if fleet emissions fail to meet CO2 limits.
  • The CO2 targets were based on expectations of a significant rise in EV demand, which has not materialised. EV sales dropped 5.9% in 2024, reducing market share to 13.6%, far below the 20% needed to meet emission goals.
  • Kaellenius argued that subdued EV sales were due to weak demand, not supply issues, and called for the scrapping of fines that could hinder investments in EV technology.
  • EU carmakers are struggling to compete with Chinese EV manufacturers and are bracing for potential U.S. tariffs under the new administration.
  • Additionally, Kallenius is advocating for a "grand bargain" with the U.S. to prevent a trade war and enhance free trade benefits.
  • The EU plans a strategic dialogue involving automakers, suppliers, and trade unions to address industry competitiveness and potential job cuts.
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Mercedes-Benz CEO Ola Kaellenius has called on the EC to address falling EV demand, warning that automakers risk billions in fines under stringent CO2 emission rules unless policies shift to support green investments and industry competitiveness, according to the automaker cited by Reuters.

  • Automakers in the EU face potential fines of up to €15bn by 2025 if fleet emissions fail to meet CO2 limits.
  • The CO2 targets were based on expectations of a significant rise in EV demand, which has not materialised. EV sales dropped 5.9% in 2024, reducing market share to 13.6%, far below the 20% needed to meet emission goals.
  • Kaellenius argued that subdued EV sales were due to weak demand, not supply issues, and called for the scrapping of fines that could hinder investments in EV technology.
  • EU carmakers are struggling to compete with Chinese EV manufacturers and are bracing for potential U.S. tariffs under the new administration.
  • Additionally, Kallenius is advocating for a "grand bargain" with the U.S. to prevent a trade war and enhance free trade benefits.
  • The EU plans a strategic dialogue involving automakers, suppliers, and trade unions to address industry competitiveness and potential job cuts.