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- BMW’s Oliver Zipse warns that a 2035 ban on gasoline cars may adversely affect Europe’s auto industry.
- He suggested that modifying this ban could lessen the EU’s dependency on China for battery supplies.
- Zipse’s remarks come amid rising apprehensions about an intense price competition with Chinese manufacturers.
The Need for Reevaluation of Gasoline Vehicle Ban in Europe
During his address at the Paris Automotive Summit, BMW CEO Oliver Zipse emphasized that if Europe aims to decrease its reliance on China for battery production, it must reconsider its impending prohibition on gasoline-powered vehicles set for 2035.
This legislation was ratified by EU member states in March 2023 as part of broader initiatives aimed at achieving climate neutrality by 2050. However, Zipse criticized this mandate requiring all new cars and vans to produce zero emissions from 2035 onward.
The Impact of Geopolitical Factors and Market Access
“For our automotive sector, maintaining geopolitical resilience alongside access to essential markets and raw materials is vital,” stated Zipse. He further noted that reducing dependence on China necessitates an openness to diverse technologies within policy frameworks.
A modification to the proposed ban would alleviate European original equipment manufacturers’ (OEMs) reliance on Chinese battery supplies. Earlier in his speech, he warned that such a prohibition could “endanger the very foundation of Europe’s automotive industry,” potentially leading to significant contraction across the sector as a whole.
Sustainable Practices Beyond Vehicle Production
Zipse highlighted BMW’s commitment not only towards decarbonizing their vehicle lineup but also focusing extensively on sustainable practices throughout their supply chains. “To ensure continued success, we require a technology-neutral approach within our policy framework,” he asserted. “Ultimately, what matters is reducing CO2 emissions effectively—how we achieve this reduction is secondary.”
The Challenges Ahead: Insights from Industry Leaders
Several leaders from Western automakers have voiced concerns regarding potential hurdles associated with transitioning their businesses toward electric vehicles (EVs). Carlos Tavares, CEO of Stellantis—which encompasses brands like Chrysler and Peugeot—advocated for an expedited shift from combustion engines to electric alternatives during an interview with Financial Times earlier this week. He cautioned against prolonged transitions which might trap automakers into investing simultaneously in both EVs and traditional gasoline models—leading to inflated costs without effective replacement strategies.
Tavares remarked: “A drawn-out transition does not replace old systems; it merely adds new ones alongside them.”
Dwindling EV Sales Amidst Rising Competition
The market has recently witnessed declining EV sales across Europe; registrations plummeted nearly 44% year-over-year in August according to figures released by the European Automobile Manufacturers’ Association. This decline occurs amidst fierce competition posed by Chinese companies like BYD who are rapidly gaining market share.
Mercedes-Benz CEO Ola Källenius addressed attendees at the Berlin Global Dialogue conference earlier this month about what he termed a “Darwinistic-like price war” between Western firms and their Chinese competitors—a situation he believes may lead to significant market consolidation over time. “Many current players will likely be absent five years down the line,” Källenius predicted while urging companies not only to remain calm but also continue investing and innovating through these turbulent times so they can emerge victorious post-transition.”
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