If you as a consumer have trouble keeping tabs on all the twists and turns of the regulatory environment facing automakers in the US, imagine what it’s like from an automaker’s C-suite. Every regulatory change can mean the difference between profits and losses, growth and downsizing, or generous dividend checks and disgruntled shareholders.
Navigating through it all is just part of the job, so it’s understandable if a car shopper doesn’t feel terribly sorry for the boss who’s pulling in big bucks. CarBuzz recently chatted with Mercedes-Benz and learned a few things about the challenges that come with all this.
An action shot of the 2026 Mercedes-AMG CLA 35Mercedes-Benz
How New MPG Standards Impact OEM Product Strategy
Executives certainly understand the importance of complying with regulations around the world that often change dramatically – and very quickly. For instance, this week, as the Trump administration announced relaxed federal fuel-economy requirements for automakers, we asked a top Mercedes-Benz executive how these changes impact the product strategy for the US. The answer just might surprise you.
“Zero,” said Christoph Starzynski, vice president of product strategy and product steering for Mercedes-Benz Cars at a media event last week. While saying Mercedes-Benz and other automakers appreciate stability and reasonable predictability as regulations roll out, Starzynski said manufacturers “have to be flexible.”
2027 Mercedes S-Class and Mercedes-Benz Vice President Christoph StarzynskiMercedes-Benz
Does It Make Sense To Change Course?
His key point is that Mercedes vehicles arriving to market now were actually in development well before the latest changes came from the Trump administration, and it doesn’t make sense to change course. “For us, the products were set up,” Starzynski (pictured above) told journalists. “There is nothing you can do overnight and say, ‘Oh, I’m changing something.'”
A smaller change, like tweaking the precious metals content in a catalytic converter, can be carried out without massive disruption, unlike other changes, he said.
“It would be different if, all of a sudden tomorrow, someone comes up and says, ‘okay, you need to have dust-free brakes.’ Then you have to react pretty quick.”
–Christoph Starzynski, Merdcedes-Benz Vice President
2026 Mercedes-Maybach SL 680 engineJared Rosenholtz/CarBuzz/Valnet
Regulatory Headaches Overseas, Too
Rather than panicking and tearing up plans that have been carefully crafted over months and years, Starzynski said, “You have to have some confidence in what you have and just follow it.” While the US market might appear politically volatile right now, he said other markets can be equally challenging. “If you look at the big markets for us, there is a lot of uncertainty, and it’s not only emissions,” he said, referring to emerging regulations for driver-assistance tech and driver distraction.
While governmental agencies might constantly cycle through regulatory changes, an automaker’s core brand value “needs to be stable,” Starzynski said. It also helps if you design a vehicle to meet the strictest standards in the world, so it complies in every region.
“You have to have, as a brand, a clear structure. You cannot react to everything that’s happening. You have to react in a way where you balance things out.”
2027 Mercedes-Benz C-Class revealed with combustion engine.Mercedes-Benz
As new regulations roll out, sometimes unexpectedly, it’s important that automakers “react in a reasonable way” and not overreact, for instance, on the powertrain front. “Developing new engines because of regulation changes is not a reasonable way,” Starzynski said.
CarBuzz Insight – Why This Matters:
From an automaker perspective, the latest regulatory changes from the Trump administration merely open the door for perhaps a bit of relaxation on the product-development side, while going in the opposite direction with stricter requirements would have caused some heartburn. If Mercedes-Benz and other automakers were already complying with Biden-era fuel-economy targets, then they have nothing to worry about.
Stay the course. But it wasn’t long ago when automakers such as General Motors and Stellantis paid big fines for exceeding federally required fuel-economy targets. President Trump has since removed penalties for non-compliance, but will that saved cash go towards a more frugal future, or a fatter present? Either way, those plans are likely already in motion.
