The measures will lead to a shrinking of the sector as a whole and also prove to be an impediment, believes BMW CEO Oliver Zipse.
BMW CEO Oliver Zipse has raised severe concerns about Europe’s plan to ban the sale of combustion-engine cars by 2035, warning that it could have significant negative consequences for the region’s automotive industry. He cautioned that this policy would lead to a “massive shrinking” of the industry as it accelerates the shift to electric vehicles (EVs) and mandates a drastic reduction in the production of traditional gasoline and diesel-powered cars.
Zipse’s apprehensions mirror broader industry anxieties about the speed and scale of this transition. While the EU’s 2035 goal is part of its broader climate strategy to reduce carbon emissions and promote sustainability, some in the auto sector worry that it could lead to job losses, higher costs, and a difficult adjustment period for manufacturers and suppliers who are still heavily reliant on combustion-engine technology. The shift could particularly impact regions dependent on the production and sale of combustion engines, as the supply chains for EVs differ significantly from those of traditional cars.
During the Paris Automotive Summit, BMW CEO Oliver Zipse voiced his scepticism about the European Union’s plans to phase out gasoline and diesel engines by stating that they are ‘no longer realistic.’ He highlighted concerns about the sustainability of subsidies for electric vehicles, emphasizing that the current approach may not be viable in the long term. Zipse’s remarks underscored the complexities and challenges associated with the transition to electric vehicles, reflecting broader industry anxieties about the feasibility of the EU’s ambitious goals.
The combustion engine has long been a cornerstone of Europe’s industrial landscape, vital to its manufacturing prowess. The rise of combustion-engine technology has driven the success of major automotive companies like BMW, Volkswagen AG, and Mercedes-Benz Group AG, but has also fostered a vast supply chain of small and medium-sized enterprises producing critical components such as pistons and exhaust systems.
The evolution of combustion-engine technology gave rise to automotive giants such as BMW, Volkswagen AG, and Mercedes-Benz Group AG and fostered an extensive supply chain of small and medium-sized enterprises specializing in critical components, from pistons to exhaust systems, believes Zipse.
