Mercedes-Benz CEO Ola Källenius is calling for a relaxation of European emissions standards, aligning with the stance of industry lobby group ACEA. In an interview with German Med, Källenius argued that stricter regulations could cost the automaker billions in fines and hinder its ability to meet customer demand.

With the adoption of electric vehicles in Europe stagnating, Källenius expressed doubts about the feasibility of achieving the ambitious CO2 targets set for 2025. He emphasized the need to align regulations with consumer preferences and market realities.

In a show of support for European competitiveness, Källenius endorsed a recent report by former ECB President Mario Draghi. The report outlines strategies to strengthen the region’s economic position in the face of growing challenges, including tariffs and a slowing Chinese economy.

Mercedes-Benz has already issued a profit warning, citing China’s economic weakness as a primary concern. Nevertheless, Källenius remains confident in the company’s cost-cutting efforts and its ability to adapt to the evolving automotive landscape.