By DCB Editorial, October 21, 2024
BMW CEO Oliver Zipse has urged the EU to reconsider its 2035 ban on new fossil fuel-emitting cars, warning that Europe’s dependence on China’s battery supply chain could harm its automotive manufacturing industry. Zipse believes that the target, coupled with slower-than-expected electric vehicle (EV) sales and unsustainable government subsidies for electric vehicles, makes the 2035 goal unrealistic. He advocates for a more flexible approach to reduce Europe’s reliance on Chinese EV battery makers and to secure the automotive industry’s future.
The EU’s 2035 ban on internal combustion engine cars, approved in 2023, poses serious challenges for European automakers. The shift to electric vehicle production means fewer components are required, threatening jobs and supply chains across the automotive industry.
Additionally, European automakers face stiff competition from Chinese EV manufacturers, which benefit from government subsidies and dominate the battery supply chain.
Countries like Italy are calling for a review of the 2035 ban, while Germany stresses the importance of rapid climate change action. France’s auto association supports a review but has not advocated for the ban’s removal.
Automakers also face the immediate pressure of meeting stricter fleet emissions targets by 2025. BMW and Mercedes are on track to comply with these targets, but Volkswagen, Stellantis, and Renault may struggle, potentially leading to fines. Some manufacturers may need to purchase emissions credits to avoid penalties.
The European Automobile Manufacturers’ Association (ACEA) has called for a two-year delay in the 2025 fleet emissions targets to help the industry manage the transition to EVs and avoid further disruption to automotive manufacturing and supply chains.
