BMW Asserts EU Ban on Gasoline Cars from 2035 is "No Longer Realistic"

BMW's Warning Against EU Ban

BMW, the German car manufacturing giant, has issued a warning that the EU's proposed ban on the sale of gasoline and diesel cars from 2035 is "no longer realistic". The company cites slow EV sales and predicts that the European auto industry will experience a "massive shrinking" if such a ban is imposed. The struggle with EV sales is already a reality for European carmakers, as subsidies in many countries are ending and Chinese low-cost vehicle manufacturers are gaining a larger market share.

EU's Emissions Regulation

In the previous year, EU member states approved an emissions regulation which stipulates the cessation of new carbon dioxide-emitting cars and vans sales by 2035. The regulation aims for a 55% CO2 emission reduction for new cars and a 50% reduction for new vans from 2030 to 2034, compared to 2021 levels. Furthermore, it seeks a 100% CO2 emission reduction for both new cars and vans from 2035. The European Commission will review the progress made towards these targets in 2026 and determine whether the targets need to be revised.

BMW's CEO Speaks Out

Oliver Zipse, BMW’s chief executive, voiced his concerns at the Paris Automotive Summit on Tuesday. He suggested that the ban could potentially threaten the European automotive industry at its core. Zipse further added that the current regulations, based on today's assumptions, could lead to a significant contraction of the industry as a whole.

Declining EV Sales in Europe

Electric vehicle sales in Europe have been dwindling this year. For instance, sales in Germany have been plummeting as Berlin ended subsidies at the end of 2023. In response to the slowing sales of EVs, the European Automobile Manufacturers' Association (ACEA) last month called for urgent action to reverse this year's trend of declining EV sales. The ACEA, which unites European auto manufacturers, urged the EU institutions to introduce urgent relief measures before the new CO2 targets for cars and vans come into effect in 2025. ACEA stated that Europe’s automakers are playing their part in the transition, but unfortunately, the other necessary elements for this systemic shift are not in place.

Bottom Line

BMW's assertion that the EU's ban on gasoline cars by 2035 is no longer realistic raises important questions about the future of the automotive industry. With the decline in EV sales and the potential threat to the industry, is it time to reconsider the timeline and approach to the transition to electric vehicles? What are your thoughts on this matter? Share this article with your friends and discuss. Don't forget to sign up for the Daily Briefing, which is delivered every day at 6pm.