Mercedes has a serious problem for 2027… and it can only solve it by spending a lot of money
A recent report from Transport & Environment highlights that Mercedes is the only European brand that is on track to be forced to rely on third parties to comply with emissions regulations in 2027. Volkswagen is also at the limit.
The European Commission set increasingly strict targets to reduce carbon dioxide (CO₂) emissions in new cars sold in Europe. Goals that are part of the community plan to accelerate the transition to electric mobility and meet climate commitments.
However, a new study from Transport & Environment has revealed that not all manufacturers are progressing at the same pace. While brands like Volvo, Renault, Stellantis, and even BMW show solid numbers, there is one German brand that has gotten into a lot of trouble: Mercedes-Benz.
A move that, although legal, highlights that its transition to electric cars is lagging behind
Europe steps on the gas… with a dangerous concession
The Brussels calendar anticipated that, starting in 2025, manufacturers would have to meet a minimum emissions reduction quota. However, a flexibility mechanism was introduced that allows compliance to be measured against the average over three years (2025-2027).
In practice, this relaxes short-term pressure, but T&E warns that it will have a side effect: two million fewer electric cars will be sold during that period than initially expected.
Still, most European manufacturers are on track to comply. Europe, as a whole, should achieve that electric vehicles reach a 25% market share in 2025-2027, with an eye on 55% for 2030.
Those who comply… and the one who doesn’t
Looking at the data, Volvo is the top student, with a wide margin over the targets. Renault and Stellantis also have no problems and can breathe easy. Volkswagen, despite its ups and downs, aims to just meet the target. BMW even appears as compliant, meaning within the limits.
In contrast, Mercedes is in the red. Its average combustion engine emissions remain too high, and the gap with the 2025-2027 targets is evident: 10 g/km above the allowed limit. In terms of electric transition, it also fails to stand out: it has a 17% share of pure electric sales compared to BMW's 25%, its historic rival.
The wildcard of pooling: buying approval from another
The only way for Mercedes to comply with the regulations will be to resort to the pooling formula, which is nothing more than buying emissions credits from cleaner manufacturers. In this case, the Stuttgart group will have to partner with Volvo and Polestar —subsidiary brands of the Geely Group— paying for the privilege of adding their good data to its own.
In other words, Mercedes faces an exam it cannot pass on its own merits and, to avoid repeating the course, it will have to spend money. A lot of money.
The global context adds more pressure. While Mercedes juggles numbers in Europe, in other markets electrification is advancing relentlessly. China already exceeds 30% market share in pure electric vehicles, Vietnam is at an astonishing 42%, and emerging countries like Thailand (24%) or Indonesia (13%) are making strong strides.
In this global race, Europe cannot afford to fall asleep. Meeting the targets for 2030 and 2035 will be essential to maintain competitiveness against Asia. And if it wants to continue playing in the top division, Mercedes will have to accelerate its electric strategy.
The outlook is clear: while the bulk of the European industry stays on the right track, Mercedes finds itself in an uncomfortable position. The star brand will not only have to invest more in electric vehicles to close the gap, but it will also be forced to dig into its wallet to buy credits from other manufacturers.
A move that, although legal, highlights that its transition to electric cars is lagging behind. And in a global market that waits for no one, Mercedes risks being left behind… unless it spends money to buy time.
Fuente: Transport & Environment
