The CEO of BMW, Oliver Zipse, has cautioned that the European Union’s plans to ban traditional combustion engines by 2035 may no longer be realistic and could lead to a significant contraction of the automotive industry. This warning came during the Paris motor show, as reported by The Guardian.

Industry Concerns and Competition

Zipse expressed concern that the 2035 cutoff for CO2-emitting vehicles “could also threaten the European automotive industry in its heart.” He believes that under current assumptions, these measures will result in a “massive shrinking of the industry as a whole.”

The Paris motor show has become a battleground for European automakers to defend their turf against increasing competition from Chinese brands. This year, Chinese brands represent only about one-fifth of those on display, down from half in 2022.

Stellantis CEO’s Perspective

Carlos Tavares, CEO of Stellantis (owner of Fiat, Citroën, and Vauxhall), added another dimension to the debate. He suggested that proposed tariffs on Chinese cars could accelerate plant closures in Europe by pushing Chinese manufacturers to move production to the continent, directly competing with European brands.

Tavares predicted that Chinese brands would likely seek cheaper manufacturing options in countries like Hungary, rather than establishing plants in traditional automotive strongholds like Germany, France, or Italy.

BMW’s Electric Push and EU Regulations

Despite these concerns, BMW is showcasing 15 electric vehicles at the Paris show, demonstrating its commitment to electrification. However, the pushback against green targets from a major player like BMW could raise concerns in Brussels.

The EU had previously reached a compromise with the German auto industry, allowing for the sale of new combustion engine cars beyond 2035 if they use efuels. But Zipse’s comments suggest that even this may not be enough to allay industry fears.

EVXL’s Take

The concerns raised by BMW and Stellantis highlight the complex challenges facing the auto industry in its transition to electric vehicles. While the shift to EVs is crucial for combating climate change, it’s clear that major manufacturers are grappling with the pace and scale of this transformation.

This situation echoes recent developments we’ve covered in the BMW category, where we’ve seen the company balancing its EV ambitions with concerns about market readiness and infrastructure. As the industry evolves, it’s becoming increasingly apparent that a nuanced approach, considering both environmental goals and economic realities, will be necessary to ensure a smooth transition to electric mobility.

What are your thoughts on BMW’s concerns about the EU’s 2035 combustion engine ban? Share your perspective in the comments below.