CEO says Daimler committed to EVs, but talk should not center on bans

by Olafimihan Oshin - 11/10/21 12:39 PM ET

Ola Kallenius, head of Daimler, talks about the world premiere of the Mercedes-Benz Vision AVTR concept car in January in Las Vegas — Associated Press/Ross D. Franklin

Daimler CEO Ola Källenius reportedly says that while his company, which owns Mercedes-Benz, is committed to phasing out fossil fuel-emitting cars, he does not believe in all-around bans.

“What it says is we will work towards emission free driving in the main markets by 2035. That’s exactly what we are doing. We should not be talking about bans,” Källenius said Wednesday when asked about a prior agreement with the British government, Reuters reported.

The British government had said in a statement that six major automakers, including Daimler, have agreed to the goal of phasing out internal combustion engines in favor of electric vehicles (EVs) within a five-year period.

Daimler had said previously it will produce only EVs by 2030 if market conditions allow it, and that it plans to make its output carbon neutral by 2039.

Källenius also said that because Daimler caters to a luxury customer base, it is easier for it to pivot toward EVs than mass-market producers, Reuters reported.

“We don’t want to be in a situation for too long where we are dividing our resources in two directions,” Källenius said, who has said the company has reorganized its supply chain to protect it from future shocks.

Källenius added that major semiconductor companies told the automaker the global chip shortage that has hit the auto industry hard this year won’t be fully resolved until 2023, Reuters noted.