Top executives from BMW, Volkswagen, and Renault have recently voiced their concerns over the European Union’s emission targets, arguing that the current phase-out rules place excessive pressure on the industry. They also noted that consumer adoption of electric vehicles (EVs) is not happening rapidly enough to meet these targets. The EU’s policy will tighten next year, leading up to the full ban of gas and diesel cars in 2035, with steep fines for automakers failing to comply.
In 2025, the EU will require a 25% reduction in fleet emissions from new passenger cars sold in Europe compared to 2021 figures. Legacy automakers are pushing back against this, stating that relying on consumer demand for EVs to drive their entire industry is unfair.
Failure to meet these new rules will result in a fine of €95 ($102) for every vehicle registered in the EU, multiplied annually by each gram of CO2 per kilometer above the target.
BMW CEO Oliver Zipse expressed the company’s stance, saying, “We believe a comprehensive review of CO2 fleet legislation in the EU is essential.” Despite this, BMW has already reduced its CO2 emissions fleet to an average 20% below the European target for 2023 and is on track to meet the 2025 targets. Zipse noted that 15% of BMW’s sales were BEVs last year, with a target of 20% by 2025. The company aims for 50% BEV sales by 2030 worldwide, possibly higher in Europe.
Zipse emphasized the challenges ahead, stating, “By the end of 2025, the world will note that it’s not that easy… The pressure then will be significant for the European automotive industry.”
Volkswagen Group CEO Oliver Blume echoed these sentiments, saying, “It does not make sense that the industry has to pay penalties when the framework conditions for the EV ramp-up are not in place.” Renault CEO Luca de Meo also joined the discussion, calling for a review in an open letter to EU legislators.
