The European car has by no means skilled such turbulent occasions and so many modifications as in recent times. It is a press release that’s supported by virtually your entire sector, each privately and publicly, as a result of problem posed by the expensive conversion of the business in the direction of electrical vehicles, whereas competing with China and browsing the tariff whims of US President Donald Trump. This has translated right into a 2025 of enormous losses and drops in earnings in a sector that has been finishing up an intense marketing campaign for greater than a 12 months. foyer, to, at the very least, obtain concessions from the European establishments concerning emissions regulation.
In 2025, the engine scored two vital victories on this area: first, Brussels delayed till 2028 the imposition of fines for these producers that don’t adjust to the emissions limits of the CAFE laws; and, in December, it acquired Brussels to reverse the ban on registering combustion automobiles in 2035. The Commission’s proposal is that the discount in tailpipe emissions will lastly be 90% and never 100% by then. However, the sector needs much more flexibility.
“First of all, I have to say that the European automobile industry is incredibly enthusiastic about the idea of achieving zero emissions. Everyone agrees that this is the destination we are heading towards and that is why we have invested more than 300,000 million in recent years,” says the president of ACEA (the European automotive affiliation) and world CEO of Mercedes-Benz, Ola Källenius, in an interview with EL PAÍS in Madrid, through the Forum. Anfac, crucial occasion within the sector in Spain organized by the nationwide car business affiliation. “There is no lack of enthusiasm with the electric car, on the contrary, but if we look at Europe and the world, we see that there is an extremely heterogeneous development of consumer preferences, charging infrastructures and the development of different markets. If we try to impose something on a market that is not ready, what we do is reduce said market, weaken the European economy, slow down growth and, in addition, put many jobs at risk. That is what the debate on flexibility is about: the method we use, not the destination,” argues the supervisor.
In this sense, Kallenius, who had the chance to take heed to the Spanish ministers of Industry and Economy on the Anfac Forum, in addition to numerous representatives of the nationwide car business, praised the Spain Auto 2030 Plan launched by the Government of Pedro Sánchez in December, which outlines a five-year roadmap for the motor, with incentives for each the acquisition of electrified vehicles and the attraction of business investments, in addition to for the set up of charging factors on the roads. “It seems that Spain is implementing policies on its own, which are different from the method used by Brussels. And, from what I understand, some of those implemented policies are beginning to show positive effects. From a political perspective, this seems more accurate than an absolutist mandate, complicated regulatory rules and draconian sanctions,” says Kallenius.
The firm he directs has invested 1,000 million within the Vitoria plant to put in its new manufacturing platform for electrical vans and minivans, referred to as VAN.EA, which can bear its first fruits with the world presentation in March of the 100% electrical VLE minivan. The first models will arrive in June. “We would not be investing more than 1,000 million in Vitoria if we did not believe in Spain and in our Spanish team. We have a first-class team here, world class, and, in fact, Vitoria will be the first factory in the world to begin producing our latest generation, high-tech electric van,” says Kallenius.
Competition with China
One of the principle issues of Mercedes-Benz and the sector normally is the aforementioned competitors with China, which within the case of the German firm suffers each within the Asian nation itself – through which German car corporations have had a robust presence for many years – and in Europe, the place Chinese manufacturers have arrived in droves in recent times. In Spain, these companies took over 10% of the nationwide market in 2025 and new manufacturers are anticipated to land this 12 months. Contrary to what’s occurring within the United States, the place the Trump administration has utterly closed the market to companies from the Asian big, Kallenius sees it as pure for these corporations to enter Europe.
“This year marks 140 years since the invention of the car. Karl Benz and Gottlieb Daimler, founders of our company, invented it in 1886. Only two years later, Daimler marketed it in the United States. Isn’t it amazing? Back then, the world was not moving at the current pace. It is natural in a global economic order based on the market economy that any entrepreneur looks for opportunities in the places in the world where they find them. The Europeans were the first to expand, then the Americans arrived, then the Japanese and Koreans. Now, we have the Chinese,” says the businessman, who sees it as important to enhance the sector’s competitiveness in prices and expertise to not be afraid of China.
“They are like a football team that has trained day and night, ready to play in the European leagues (…) Of course equal conditions are important, we must look at the issue of state subsidies [por eso Europa impuso aranceles a los coches eléctricos chinos]but I don’t think we can exclude a country. The main debate should be how to improve our own competitiveness. Not how we reduce it through regulation,” provides a businessman who sees alternatives for the sector within the newest commerce agreements signed by the EU with Mercosur and India: “If we want to be successful as Europeans, we must improve our competitiveness and collaborate with partners from around the world, without falling into naivety.”
Meanwhile, the businessman is aware of that the atmosphere will proceed to be difficult for a sector that has skilled a 2025 that has turned pink the outcomes of a number of producers similar to Renault or Ford – the latter has reversed a part of its electrification plans – or drastically lowered the earnings of corporations similar to Mercedes-Benz itself. “The pressures of the automotive industry, the lack of growth, fierce Chinese competition, tariff burdens and geopolitical uncertainty… I do not think they will disappear in 2026. It will be a complex year, with many challenges,” he assures. However, the businessman just isn’t intimidated and affirms that Mercedes will go “on the attack” with the biggest variety of launches in its historical past, about 40 fashions between 2025 and 2027. “What we hope is that Europe changes the priorities of its agenda to also bet on growth,” he claims.
https://elpais.com/economia/2026-02-24/kallenius-mercedes-benz-espana-practica-medidas-diferentes-a-las-europeas-con-el-automovil-y-parece-que-estan-dando-resultado.html