BMW chief calls for European petrol engine ban to be relaxed

The head of the powerful BMW motor group has urged European policymakers to rethink plans to ban petrol and diesel vehicles by 2035, or risk being reliant on Chinese EV battery manufacturers.

Speaking at the Paris Motor Show on Tuesday, BMW chairman Oliver Zipse urged regulators to allow European motor manufacturers to play to their technological strengths, and permit a mix of next-generation, less polluting vehicles on the road, in addition to electric vehicles.

While Europe lags behind China in the development of affordable electric vehicles and the crucial battery technology driving the EV revolution, it’s a major player in the development of alternative fuels, such as e-fuels, biofuels, and hydrogen fuel cell cars.

Zipse painted a worryingly bleak picture of the mood in Europe as the 2035 deadline approached, saying it was “trending towards one of pessimism” and that the region needed a new regulatory framework to remain competitive.

He added: “A correction of the 100% BEV target for 2035 as part of a comprehensive CO2-reduction package would also afford European OEMs less reliance on China for batteries. To maintain the successful course, a strictly technology-agnostic path within the policy framework is essential.”

Stalling EV sales a major problem for European manufacturers

Across Europe, motor manufacturers including BMW, VW, and Renault, as well as the Italian government, have called for the CO2 targets to be loosened or delayed, fearing the impact of heavy fines due to lower-than-expected EV sales.

Lobby group the European Automobile Manufacturers Association (ACEA), which represents 15 major Europe-based auto manufacturers, said its members could face “multibillion-euro fines” because the shift to electric production has not been quick enough to meet the EU targets.

Zipse told the Paris show that the 2035 cut-off point for CO2-emitting cars was “no longer realistic” and that the ban represented a significant challenge that “could also threaten the European automotive industry at its heart and, with today’s assumptions, lead to a massive shrinking of the industry as a whole”.

Growing discontent with 2035 deadline

In September, Italy’s Prime Minister, Giorgia Meloni, criticised the EU for “self-destructive” policies on shifting to electric production and vowed to push for changes.

The Czech Republic, one of Europe’s largest manufacturers of cars and parts, has also been increasingly vocal in asking for the rules to be relaxed.

The overall European car market has been struggling.

The number of cars sold in the EU in August fell to 643,000, down by nearly a sixth compared with last year, according to the ACEA.

However, sales of electric cars fell more rapidly, by almost a quarter (24%) compared with August 2022. The lobby group claims the fall is due to insufficient consumer demand, although some analysts blame manufacturers, arguing that they failed to invest early enough in the transition to electric production and overestimated the prices they could charge.

The scrapping of attractive subsidies to German consumers considering switching to EVs, has also been highlighted by industry analysts as a factor slowing EV take-up in the EU’s largest car market.

Recent proposals by the German Social Democratic Party (SPD) to introduce a scrappage scheme, to incentivise drivers to ditch polluting vehicles, were met with criticism.

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The German Association of Energy and Water Industries (BDEW) argued that authorities should focus on expanding the charging infrastructure to increase EV take-up.