The executive argues that the 2035 ban on internal combustion engines contains significant legislative flaws.
Källenius spoke in Brussels on Wednesday, urging policymakers to adopt more pragmatic approaches to environmental goals.
He believes regulators must respect market forces rather than imposing rigid deadlines on the automotive sector.
The industry currently faces extreme competition as international manufacturers increase their presence in the European market.
According to Källenius, the 2020 emissions legislation lacks the flexibility needed for a successful industrial shift.
He emphasizes that maintaining economic health remains vital while the sector works toward long-term decarbonization targets.
The CEO suggests that a technology-neutral approach would better serve both the climate and the economy.
Mercedes-Benz continues to navigate these regulatory challenges while balancing consumer demand with evolving environmental mandates.
