BMW’s CEO, Oliver Zipse, has called on European regulators to cancel the planned 2035 ban on new fossil fuel-emitting cars, arguing that the shift toward 100% battery-electric vehicles (BEVs) increases reliance on China’s battery supply chain.
Speaking at the Paris Motor Show on Tuesday, Zipse emphasized the need for Europe to embrace a broader range of technologies, including e-fuels, biofuels, and hydrogen fuel cells, to maintain its competitive edge and reduce dependency on a single energy solution.
“The mood in Europe is trending towards pessimism,” Zipse said, urging policymakers to implement a more flexible regulatory framework that allows automakers to leverage various CO2-reducing technologies. He argued that a correction to the BEV-only target would provide greater flexibility and prevent European manufacturers from becoming overly reliant on Chinese battery suppliers. “A strictly technology-agnostic path within the policy framework is essential,” he added.
The European Union (EU) approved a landmark law in March 2023 mandating that all new vehicles sold from 2035 must have zero CO2 emissions, effectively banning the sale of new petrol and diesel cars. The regulation also sets a target of reducing CO2 emissions by 55% by 2030 compared to 2021 levels.
Automakers including BMW, Volkswagen, and Renault, as well as the Italian government, have expressed concerns that strict CO2 targets could result in heavy fines due to lower-than-expected EV sales. They have pushed for a loosening or delay of the emissions goals. Despite these concerns, Germany has resisted calls for an early review of the regulations, citing the importance of clear targets for the industry and the urgency of addressing climate change.
While Zipse and others advocate for policy changes, the head of France’s auto association, PFA, stopped short of calling for the ban to be scrapped entirely. However, he emphasized the need for a review of the targets, which is currently scheduled for 2026, and suggested it was time to bring discussions “back around the table.”