The automotive giant BMW has launched a sharp critique of the European Commission’s recently unveiled regulations governing the future of internal combustion engines, signaling growing tensions between industry and policymakers on the path to decarbonization. Oliver Zipse, CEO of BMW, voiced his concerns in an interview with the Handelsblatt, claiming the new guidelines fall significantly short of expectations, particularly regarding stipulations for commercial vehicle fleets.
Zipse characterized the phased implementation of emissions targets across various European nations starting in 2023 as an “indirect ban” on combustion engines, describing the plan as “absurd” due to its complex and varied national quotas. The fragmentation risks creating a disjointed regulatory landscape, potentially hindering investment and innovation.
Beyond the fleet regulations, Zipse expressed disapproval of the Commission’s promotion of smaller, more affordable electric vehicles, labeling the incentives as “arbitrary”. He drew a parallel to housing market regulation, arguing that a similarly metric-focused approach to electric vehicles risks unintended consequences and a potentially flawed understanding of consumer needs. He cautioned the Commission against implementing what he termed “protectionist measures” that ultimately undermine European industry.
However, Zipse also asserted that the EU isn’s ambition isn’t sufficient in key areas. He specifically pointed to the slow rollout of regulations surrounding green steel and sustainable renewable fuels. The current timeline, with these measures only taking effect from 2035, is, in his view, a missed opportunity to accelerate carbon dioxide reduction and unlock readily available technological advances. This delayed implementation, Zipse suggests, demonstrates a lack of urgency and willingness to grapple with the full potential for emissions reductions that currently exists within the European automotive sector. The remarks suggest a growing pressure on the Commission to reconsider its approach and cultivate a more collaborative dialogue with industry stakeholders.