BMW CEO doesn’t want EU CO2 targets to be postponed

BMW CEO Oliver Zipse has spoken out against delaying the EU’s CO2 targets for 2025. At the same time, he continues to argue in favor of remaining open to different technologies but sees electric cars as having the most significant growth potential.

In an interview with the German specialized magazine Automobilwoche, Zipse advocates remaining open to all technologies and rejects calls to postpone the 2025 CO2 targets.

“We have known the targets set for 2025 since 2019, and we have aligned our model policy accordingly and further increased the efficiency of the powertrains,” said Zipse. It is about electric mobility and areas such as aerodynamics, drivetrains, and brakes.”

“Almost all of BMW’s combustion engines now work with 48-volt technology. You must invest in this in good time; otherwise, as a manufacturer, you are not prepared for the new regulations,” Zipse adds. “We see no reason to postpone the CO2 targets for 2025.”

No ICE ban in 2035

However, Zipse believes the ‘combustion engine ban’ in the EU from 2035 is a mistake. It “curtails successful technologies but does not create sufficient investment in new paths and technologies to achieve Europe’s climate targets,” says the BMW CEO.

Technological openness is “the key to Europe’s competitiveness.” The regulation, often referred to as the ‘combustion engine ban,’ is open to different technologies as long as the vehicle’s CO2 emissions are zero. For example, it could be driven by e-fuels.

However, Zipse sees it as the antithesis of a policy he calls for, which “creates the framework conditions to promote progress and economic growth instead of erecting additional barriers.”

The BMW boss calls for better synchronization of individual regulatory initiatives. For example, the CO2 regulation for new cars is now decoupled from the Renewable Energy Directive, which regulates fuels’ carbon footprint.

“Why is the mineral oil industry not subject to more demanding CO2 targets for fuels?” asks the BMW boss. “It would then have to increase the proportion of low-CO2 or carbon-neutral fuels, such as E25 or HVO100.” HVO stands for hydrotreated vegetable oil, and E25 is an ethanol fuel mixture.

Hydrogen

The BMW boss also defends the decision to launch a series vehicle with a hydrogen fuel cell in 2028, while other car manufacturers have significantly scaled back their fuel cell activities. “The decision is based on an analysis of what is happening in the global markets: Where are the regulations heading, and what do customers expect?” says Zipse.

BMW has drawn different conclusions from car manufacturers who are not pursuing the fuel cell as a further technology path. Zipse sees specific synergies with battery electric cars: “The advantage is that we can utilize very similar installation spaces with the fuel cell as in electromobility, which many underestimate. We are happy to take on a pioneering role with Toyota.”

BEV remains the strongest growth driver

However, the fuel cell will be limited to one model for now. The situation is entirely different for battery-electric cars, where BMW offers a battery-electric version of almost every model. With the Neue Klasse platform, which will debut in 2025 with an X3-style electric SUV, BMW is about to make a significant technological leap.

Zipse sees good timing: “The year 2025 is the perfect time for this because we would have introduced the next generation of many technologies anyway. In combination with a new architecture, completely new possibilities are opening up, just in time for the further ramp-up of electric mobility.”

“One should not be irritated by the debate in Germany.” Zipse attributes the current registration figures to the discontinuation of the BEV subsidy. “Electric mobility will remain our strongest growth driver for the next few years, especially because of the Neue Klasse,” Zipse concludes.

Blowing hot and cold

With his view on not postponing the EU CO2 targets, Oliver Zipse is taking over the role ex-Stellantis CEO Carlos Tavares played. The latter steered away from the ACEA membership (the Association of European Car Manufacturers) and pointed at the European manufacturers complaining about the 2025 EU CO2 targets as not having done their homework.

Zipse, the ACEA president at the time, had to oppose Tavares, just like Renault boss Luca de Meo, the current ACEA president, does now. Zipse, now more free in his movements, seems to take over the role of Tavares.

Depending on whether they are well or poorly prepared for the 2025 regulations, European manufacturers tend to blow hot and cold about these CO2 targets. Already selling a fairly impressive percentage of cars as BEVs and preparing for the new electric era, BMW sees no advantage in opposing the EU regulations.

Stellantis, on the contrary, has already announced that it will rejoin the ACEA ranks now that its former CEO has left. It will be interesting to see how this ‘musical chair’ will finally end.