In early 2023, the European Union enacted stringent emission regulations that effectively prohibited the sale of new vehicles with combustion engines. At that time, the development of electric vehicles was accelerating, and market trends indicated a growing demand. However, circumstances have since evolved. BMW is now part of a growing movement advocating for the repeal of this ban. BMW CEO Oliver Zipse expressed these sentiments recently at the Paris Motor Show. According to Reuters, the executive voiced significant concerns about the sustainability of manufacturers if the ban were to persist. He emphasized China's dominant role as a battery supplier, a position that necessitates substantial collaboration amid strained relations between China and Western nations. Zipse also noted the declining enthusiasm for EVs across Europe, a trend corroborated by the drop in EV sales following the initial surge in the early 2020s.
"A revision of the 100 percent BEV target for 2035 as part of a comprehensive CO2-reduction package would reduce European OEMs' dependency on China for batteries," Zipse stated at the Paris Motor Show, as reported by Reuters. "To sustain our progress, it is crucial to adopt a technology-neutral approach within the policy framework." Zipse is not the only one apprehensive about an entirely electric future by 2035. Even before the EU's 2023 proposal was finalized, Germany led a coalition of seven nations opposing the ban. Germany and the EU eventually reached a compromise, allowing exceptions for ICE vehicles using synthetic or carbon-neutral fuels.
Despite this compromise, opposition continued to grow. In January 2024, Porsche's Chief Financial Officer Lutz Meschke anticipated that the ban would either be postponed or entirely revoked. BMW and Volkswagen, along with several other automakers, have since advanced new combustion engine developments. Politically, Italy's Minister of the Environment and Energy Security, Gilberto Pichetto Fratin, recently asserted that the ban "must be revised." Conversely, Volvo remains fully supportive of the initiative.
Zipse's remarks coincide with BMW's imminent launch of its Neue Klasse vehicles, a series of EVs that signify a new era for the brand.