The EU is wrong - opening up markets is best way to help EV makers, says Mercedes CEO

The European Union should be working with partners to open new markets for its carmakers rather than using tariffs to restrict competition, Mercedes CEO Ola Källenius told CGTN.

In an exclusive interview, the car boss said policymakers should play on Europe's strengths. Last year the bloc imposed duties of up to 35 percent on some electric vehicle imports from China. Negotiations are underway to find a solution.

"We're calling for a sensible negotiation here to find common ground," Kallenius said. "If we want to grow our footprint, if we want to create jobs, if we want to grow the economy, if we want to create more tax revenue, make more profit and be able to give returns to our shareholders. It is opening up markets, not closing down markets, that's been the recipe for success."

Mercedes yesterday revealed that sales slipped four percent in 2024 to €145.6 billion ($152bn). However, Kallenius said the company would respond by investing to improve its products. He suggested European Union leaders should mirror that approach.

"The more we do our own homework to make it more attractive to invest more euros in Europe because you're going to get a good return, we can actually tilt it [the competitive environment] in our favor, and that's in our own hands," he said, adding: "The best way towards that is not to start by raising a trade barrier towards one of our largest trading partners, which is China."

Kallenius also pointed to the company's efforts to expand in China, despite the fiercely competitive environment.

"If you want to be one of the winners in that game and that is what we're doing at Mercedes-Benz, you need to double down on what the Chinese customer is looking for," he said, highlighting investments in digital projects but also noting the cost advantages of operating from the country.