BMW CEO Warns EU To Rethink 2035 Fossil Fuel Ban

Europe is dead-set on banning fossil fuel vehicles from 2035 onwards, but it could mean the end for the Union’s automotive sector.

bmw,Oliver Zipse

BMW CEO: Oliver Zipse

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Europe’s plan to ban the sale of new fossil fuel-emitting cars by 2035 is under increasing scrutiny, with BMW CEO Oliver Zipse warning that it could lead to the collapse of the continent’s automotive industry and increase dependence on China’s battery supply chain. Zipse has called for a reassessment of the European Union’s (EU) ambitious target, citing unsustainable subsidies and slower-than-expected electric vehicle (EV) sales as reasons for concern.

Zipse, speaking at the 2024 Paris Auto Show on 15 October, highlighted that the planned ban on combustion-engine vehicles could lead to a “massive shrinking” of the European automotive sector. He emphasised that the current 2035 goal is no longer realistic and should be revised as part of a broader CO2-reduction strategy. He said:

“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.”

All-electric BMW i7 xDrive60

This isn’t the first time European stakeholders have voiced their grievances and concerns to lawmakers, Italian government officials previously stated that automakers based on the continent would be crippled if current conditions weren’t assessed.

End of an Era?

The EU’s 2035 law, approved in 2023, mandates that all new vehicles sold after this date must have zero CO2 emissions, effectively ending the era of petrol and diesel-powered cars. While the policy aims to accelerate Europe’s green transition, it also threatens to disrupt an industry that has long been a pillar of the continent’s economic strength. Brands like BMW, Volkswagen, and Mercedes-Benz have thrived on combustion-engine technology, and the sector supports a wide network of enterprises that produce critical components.

However, the push toward electric vehicles (EVs) presents new challenges for Europe’s automakers, who are now facing fierce competition from Chinese companies, which have rapidly advanced in EV production. The influx of cheaper Chinese EVs, coupled with the removal of government subsidies in many European countries, has added pressure on manufacturers to adapt swiftly. Unlike traditional combustion engines, electric cars require fewer parts, and the majority of those components – especially batteries – are produced in China.

byd,seal 7

The BYD SEAL 7 – an all-electric sedan from China

2035 Impact on South Africa

For South Africa, the ripple effects of the EU’s 2035 ban could be profound. The country’s automotive industry is closely tied to Europe, both in terms of exports and as part of the broader global supply chain. South Africa’s car exports, including those from major brands like BMW and Ford, are heavily dependent on European markets. Should the EU push through with its zero-emissions target, local manufacturers will need to transition to EV production to maintain market access rapidly. This shift will require significant investment in new technologies, infrastructure, and workforce retraining, which could pose challenges for South Africa’s economy.

Furthermore, as Chinese EV makers increase their market share in Europe, South Africa may also face increased competition from Chinese exports, impacting local industries that supply components for combustion-engine vehicles. Without the necessary preparations to embrace electric vehicle production and ensure a secure battery supply chain, South Africa risks being left behind in the global automotive landscape if Europe fully commits to its 2035 ban.

Ultimately, the EU’s plan to phase out fossil fuel-emitting cars will have wide-reaching consequences, not just for Europe, but for countries like South Africa that are intertwined with the European auto industry. Re-evaluating the 2035 target could provide breathing room for European and South African manufacturers alike, while also addressing concerns over dependency on China’s battery dominance.

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The post BMW CEO Warns EU To Rethink 2035 Fossil Fuel Ban appeared first on CAR Magazine.


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