BMW’s CEO, Oliver Zipse, has expressed strong opposition to the forthcoming ban on the sale of new petrol and diesel cars in Europe, warning it could jeopardise thousands of jobs across the industry. Scheduled to take effect in 2035, the legislation mandates the exclusive sale of vehicles with zero tailpipe emissions, a move Zipse believes is misguided and premature.
Speaking at the Automobilwoche Kongress in Berlin, Germany, Zipse described the impending policy as a “major error” during comments reported by **BMW Blog**. The CEO highlighted concerns that the law could slash the scale of Europe’s automotive industry by half, especially as many EU nations may not yet be fully prepared to embrace electric vehicles (EVs) as their sole option.
Zipse’s remarks come at a turbulent time for Germany, where political uncertainty looms following the collapse of the coalition government. With elections set for February 2025, the automotive sector faces mounting challenges, including calls for the EU to reconsider the ban. Italy’s government has already urged for more flexibility, advocating for a mix of technologies rather than relying solely on battery-electric and hydrogen-fuel cell vehicles. A change in Germany’s leadership could see similar demands emerge.
Since becoming BMW’s CEO in 2019, Zipse has consistently voiced scepticism about policies aimed at eliminating internal combustion engine (ICE) vehicles. Reflecting on the EU’s 2022 decision to formalise the ban, Zipse argued that halting ICE production outright was a flawed approach.
“If the industry is pushed into relying on just one technology, it will fundamentally alter its scale and structure,” he explained, reinforcing his view that a diversified strategy is essential for long-term stability.
Zipse’s stance aligns with that of Toyota Chairman Akio Toyoda, who recently warned Japan’s planned 2035 petrol and diesel car ban could lead to millions of job losses. Toyoda emphasised the risk to workers specialising in engine-related roles, cautioning that a complete shift to EVs could devastate suppliers and employees in the automotive supply chain.
Despite their criticisms, both BMW and Toyota remain committed to emissions reduction. BMW backs Europe’s mandated CO2 reduction goals, while Toyota has long championed a “multi-pathway” approach, integrating ICE vehicles alongside electric and hydrogen-powered alternatives.
Demonstrating their commitment to sustainable innovation, BMW and Toyota announced a partnership in September 2024 to develop a mass-produced hydrogen fuel-cell vehicle. At the Paris Motor Show the following month, Zipse reiterated the need for flexible policies, advocating for a more technology-neutral framework to reduce dependence on Chinese-manufactured batteries.
“A balanced CO2 reduction strategy would give European automakers greater resilience and reduce reliance on China,” he stated.
The German automotive sector is grappling with declining exports, increased competition, and shifting consumer demand. In September 2024, BMW issued a rare profit warning despite overtaking Tesla in European EV sales earlier that year. Meanwhile, Volkswagen reported a 64% profit drop in the third quarter of 2024, leading to factory closures for the first time in its history, and Mercedes-Benz experienced a 54% downturn over the same period.
Adding to the strain, Germany opposed higher tariffs on Chinese-made EVs earlier in 2024, a decision influenced by the country’s significant petrol and diesel vehicle exports to China. This move sparked tension within the EU, with French President Emmanuel Macron condemning China’s retaliatory tariffs on French brandy exports as politically motivated.
While Australia has yet to introduce a nationwide ban on petrol and diesel vehicles, the Australian Capital Territory plans to prohibit their sale from 2035. The country’s New Vehicle Efficiency Standard (NVES), launching in 2025, aims to reduce CO2 emissions incrementally but stops short of enforcing zero-emission targets.
As the global automotive landscape evolves, the debate over the 2035 ban underscores the complexities of transitioning to sustainable mobility. For industry leaders like BMW and Toyota, the focus remains on advocating for inclusive, multi-faceted strategies that address environmental goals while safeguarding jobs and economic stability.
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