Ola Källenius, CEO of Mercedes, claims that the European Union’s 2035 ban on internal combustion engines will “wipe out” the industry. He warns that moving too fast toward electric vehicles will lead to a “full-speed crash,” and calls instead for incentives—like tax breaks and charging subsidies—rather than an outright ban. He argues that eliminating gasoline and diesel in just over a decade is unrealistic, and fears a pre-ban sales rush that could destabilize the market.

But this defensive, outdated thinking is exactly why Mercedes has already lost sixty percent of its sales under his leadership. While Chinese automakers raced ahead with affordable, advanced electric vehicles, Källenius clung to old engines and a slower rollout. The result? Chinese EVs now cost up to seventy-five percent less than Mercedes models, yet offer far more in safety, technology, and comfort. Their interiors are sleek, high-tech, and truly luxurious — a stark contrast to Mercedes’ outdated designs, which in 2025 feel closer to tractor cabins than to premium vehicles.

This isn’t just about aesthetics. Chinese electric cars deliver cutting-edge driver-assist systems, next-generation infotainment, superior connectivity, and advanced safety features — all while undercutting German brands on price. Meanwhile, Mercedes’ interiors and tech packages look primitive by comparison, and its reluctance to fully commit to electric power has left it irrelevant in the markets where EVs are winning fastest.

Källenius once publicly supported the 2035 ban, calling the shift to electric “irreversible.” Now that the transition is proving harder than expected, he’s retreating into fear and delay — exactly the kind of leadership that allowed Chinese automakers to seize global dominance. If Mercedes keeps following this path, it won’t just lose the EV race — it will watch its legacy dismantled, replaced by a new standard of luxury, safety, and technology that Germany no longer defines.