Headline rephrased: Mercedes' Chief Pens Letter in Opposition to EU Policy Regulations

In an open letter to Ursula von der Leyen, President of the European Commission, the heads of Mercedes-Benz and Schaeffler, Ola Källenius and Matthias Zink, have expressed their concerns about the EU's current automotive industry transformation policy.

Källenius, who is also the President of the European Automobile Manufacturers' Association (ACEA) since 2025, and Zink, the CEO of Powertrain and Chassis at Schaeffler and the President of the European Association of Automotive Suppliers (CLEPA), have highlighted several issues that require immediate attention.

The letter, sent ahead of the Strategic Dialogue on the Future of the Automobile Industry on September 12th, emphasises the need for simplified, slimmer EU rules to reduce bureaucracy. The Dialogue is considered a crucial opportunity for policy change and the EU's last chance to adjust its policy to current realities.

The industry leaders have identified dependence on Asia in the battery value chain, unequal distribution of charging infrastructure, high electricity prices and production costs, and the burden of tariffs such as the 15 percent import duty on EU vehicles in the US as pressing concerns. If not addressed, these issues could "play into the hands of our competitors."

The letter also expresses frustration with the lack of a comprehensive and pragmatic political plan for the transformation of the automotive industry in the EU. The heads of the lobby associations believe that the EU strategy for the automotive sector must adapt to current market, geopolitical, and economic realities.

Källenius and Zink are particularly concerned about the strict CO2 targets for passenger cars and light commercial vehicles for 2030 and 2035, including the regulation that no new vehicles that run on fossil fuels can be sold in the EU after 2035. They believe these targets are "simply not achievable in today's world."

Promoting multiple drive technologies is essential for market acceptance, with the keyword being "technology openness." The leaders demand more ambitious, long-term, consistent demand-side incentives, including lower energy costs for charging, purchase premiums, tax relief, and preferred access to urban areas.

The industry also considers a stricter usage factor for plug-in hybrids counterproductive and detrimental to competitiveness. The heads of the lobby associations state that failure to adjust EU policy could lead to the failure of the entire transformation.

The letter concludes with a request for a review of the CO2 regulation for heavy trucks and buses "as soon as possible." The path needs to be recalibrated to achieve climate goals while securing Europe's industrial competitiveness.

Ola Källenius and Matthias Zink directly addressed European Commissioners responsible for transport and climate policy in their open letter to express their concern and criticism regarding the EU’s automotive industry transformation policy. The upcoming Strategic Dialogue on September 12th is expected to provide insights into the EU's response to these concerns.

Headline rephrased: Mercedes' Chief Pens Letter in Opposition to EU Policy Regulations