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Oliver Zipse criticizes the EU guidelines and calls for a more flexible CO₂ strategy. According to the CEO of BMW, a rigid ban would endanger European industry.
Munich – BMW boss Oliver Zipse apparently has concerns about the future of the European automotive industry and doesn’t mince his words. His sharp criticism is directed against the EU’s decision to phase out combustion engines from January 2035. On the sidelines of the “Automobilwoche Congress” in Berlin, Zipse made it clear that he believes setting this date is a mistake.
BMW boss Zipse about 2035: “Industry will only be half as big after that”
According to the BMW boss, it would be negligent to completely change the markets on one deadline. In Zipse’s opinion, this determination does not take market conditions and technological progress into account, and in Zipse’s opinion, this results in incalculable risks for the industry: “Then no one can complain if the industry is then only half as big,” she quotes Automobile Week the CEO.
Zipse emphasizes that a smooth transition of the automotive industry to low-emission technologies makes more sense than a “hard landing” through a sudden ban. “If you put everything on a date, you open up the industry to blackmail,” he also warns, alluding to possible dependencies on raw materials.
The heart of Europe’s auto industry is at a crossroads. BMW boss Oliver Zipse is critical of the end of combustion engines in 2035. © IMAGO/Sepp Spiegl
Combustion engine off: reducing CO₂ emissions too quickly?
The BMW boss believes that gradually tightening CO₂ emissions targets over the years would be better for the industry. Current EU requirements stipulate that industry must reduce its CO₂ emissions by 15 percent by 2025 compared to 2021. A reduction of 55 percent should be achieved by 2030 before a ban on combustion engines for new cars is imposed in 2035.
For Zipse, this approach is problematic because the changes to the goals represent very large and expensive steps that leave little room for flexibility. A slower pace of CO₂ reduction would make more sense, said the BMW boss, as it would promote innovation and give car manufacturers the time they need.
BMW, Volkswagen and the stricter CO₂ requirements for 2025
Zipse apparently took an indirect swipe at rival Volkswagen with a view to 2025: Anyone who says they aren’t ready yet is admitting that their cars are lagging behind technologically – “the limits have been known for five years.” Car manufacturers would have had enough time to prepare for the new EU regulations.
VW is struggling to implement its emissions targets and, according to an analysis by major bank UBS, is having difficulty achieving the necessary proportion of electric cars. Accordingly, Europe’s largest car company had an electric car (BEV) share of around 13 percent of new registrations in 2023. According to Zipse, there is a lack of credibility when companies want to compensate for their own failures through demands.
Why combustion engines have to exist alongside electric cars
BMW is outperforming the competition in electric car growth
In contrast to VW, BMW appears to be on track despite the market delays in electromobility: pure electric car sales of the group’s models rose by 10.1 percent in the third quarter compared to the previous year. Almost one in five of the more than half a million vehicles delivered were purely electric.
Zipse is convinced that the positive global trend in electromobility will continue and expects the innovative “Neue Klasse” electric platform to provide a further boost for the premium manufacturer. “Electromobility is growing worldwide, Germany is a special case here,” said the 60-year-old.
Drive diversity is the key to global success for BMW
Aside from the debate about emissions limits, Oliver Zipse underlined the importance of technological diversity at BMW at an awards ceremony. The Munich-based company continues to rely on a wide range of drives that goes beyond pure electric cars. “Diversity is our recipe for success. That’s why our offering remains as diverse as our customers are,” quoted Bild den CEO.
Zipse makes it clear that BMW will continue to rely on five types of drive in the future: In addition to electric cars, these will include gasoline, diesel, plug-in hybrids and even hydrogen cars. “For us there is no difference between the supposedly old and supposedly new world: every customer gets the latest technology in their car, regardless of the type of drive.”
Diesel engine from BMW: CEO Zipse is of the opinion that modern, economical diesel engines are also sustainable. © Funke Photo Services/Imago
BMW and China: Zipse criticizes “absurd” EU punitive tariffs
Another topic that Zipse addressed at the award ceremony was the punitive tariffs on Chinese electric cars announced by the EU Commission. The BMW boss considers this decision to be counterproductive and “absurd”.
“Politicians are demanding comparatively cheap electric cars from manufacturers so that customers can make the switch faster. And then the EU Commission decides on tariffs that make these very vehicles artificially more expensive,” explains the manager. In his view, a trade conflict would only create “losers”. (PF)
