CEO of BMW: ‘ICE ban in 2035 is no longer realistic’

BMW CEO Oliver Zipse’s latest stance against the sales ban on combustion-engined cars by 2035 might reignite the discussion surrounding a political revision on the EU level.

According to the top executive, keeping the combustion engine running is the best remedy for remaining competitive in the face of mounting Chinese competition. President of the European Commission Ursula Von der Leyen’s Popular Party is campaigning to bring the issue back to the table.

Talking to reporters at the Paris Motor Show, Oliver Zipse stated clearly that the 2035 cut-off point for CO2-emitting cars was no longer realistic. “With today’s assumptions, it will lead to a massive shrinking of the industry as a whole,” he said. “A correction of the 100% BEV target for 2035 as part of a comprehensive CO2-reduction package would also afford European OEMs less reliance on China for batteries,“ as he further clarified the advantage of lifting the ban.

Tariffs accelerate factory closures

The automotive industry seems more interested in finding a better environmental solution for the combustion engine than in imposing tariffs on China to stifle competition in the battery-powered car category.

Also at the Paris Motor Show, Stellantis CEO Carlos Tavares said the tariffs would accelerate plant closures all over Europe. This would force Beijing to compete directly on European soil—or in trade-free but cheap labor neighboring countries—for production. Assembly in big countries like Italy, Germany, and France can’t match those cost strategies.

The industry’s resistance to the approved green policies is sending alarm bells ringing in Brussels, as the European Union has steadfastly committed to achieving carbon neutrality across member states.

In 2023, the German car industry and the EU were at odds over the proposed 2035 phase-out of CO2-emitting vehicles. The plan, which set a deadline for stopping the sale of new gasoline and diesel cars, was intended to be a cornerstone of the EU’s climate goals. Germany managed to secure a compromise, allowing the sale of new internal combustion engine (ICE) vehicles beyond 2035, but only if they use synthetic fuels, or ‘e-fuels’.

Von der Leyen making a U-turn?

However, Zipse’s latest statements suggest that this compromise is insufficient. It’s also worth noting that BMW is the only premium brand with increasing BEV sales, even outperforming Tesla in Europe.

Brussels, meanwhile, tries to remain firm in its commitment to its climate agenda. It regards the automotive sector as crucial to its broader efforts to reduce greenhouse gas emissions and transition to a greener economy.

However, cracks are appearing at the EU level. According to Walloon newspaper La Dernière Heure, the European People’s Party (EPP), led by Ursula von der Leyen, is pushing for a review of the planned 2035 ban. As the most significant political group in the European Parliament, the EPP agrees with Zipse’s reasoning, stating that the ban threatens European jobs and the automotive industry’s competitiveness.

The EPP emphasizes the need for “economic realism” and keeping driving affordable for all, not just those who can afford expensive electric vehicles. Echoing the concerns of the industry captains, the EPP highlights the risk of plant closures, such as those at Volkswagen in Germany or Audi in Brussels, and calls for an urgent revision of the ban to safeguard workers’ futures during the green transition.

This shift in the EPP’s stance comes despite von der Leyen’s previous leadership in implementing the original 2035 ban.