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BMW: Gasoline Car Ban Poses “Imminent Risk” To European Automakers

The EU’s pledge to ban the sale of new gasoline and diesel cars and vans from 2035 poses an “imminent risk” to Europe’s car manufacturers, which are unlikely to win a looming EV price war with their Chinese competitors, BMW chairman Oliver Zipse has told the Financial Times.

“I want to send a message: I see that as an imminent risk,” Zipse said.

The executive, however, said BMW was in a better position to compete with the Chinese manufacturers, most of which are targeting buyers of cheaper and smaller electric vehicles.

Yet, “The base car market segment will either vanish or will not be done by European manufacturers,” Zipse told FT.

European Union member states in March approved an emissions regulation under which the bloc will end sales of new carbon dioxide-emitting cars and vans in 2035.

The new rules target 55% CO2 emission reductions for new cars and 50% for new vans from 2030 to 2034 compared to 2021 levels, as well as 100% CO2 emission reductions for both new cars and vans from 2035.

The landmark deal was made possible after Germany – the biggest economy, the biggest car market, and the biggest car manufacturer – sought and won an exemption for e-fuels. Germany wanted sales of new cars with internal combustion engines if they run on e-fuels to continue beyond 2035, and it got that exemption.

The slump in exports of Germany’s auto industry to China in the first quarter of 2023 could be the beginning of a new long-term trend of “strong disruption” in German-Chinese trade as China’s EV boom accelerates, researchers at the IW institute in Cologne said in a report in June.

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“There appear to be strong disruptions playing out in the automotive sector, especially regarding China’s increasing importance as an exporter of electric cars,” the report’s authors wrote. 

By Tsvetana Paraskova for Oilprice.com

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  • DoRight Deikins on September 04 2023 said:
    If one was to buy a car solely based on price, there would be no contest with Chinese cars. And the same most likely with bing and show, all the fancy doodads. What good is a fancy electronic piece if it breaks before it leaves the lot?

    But most people with any intelligence buy a car that is reliable and will retain value when it is resold. BMW is just crying wolf, they've a well deserved rep as does their other counterparts in Germany.
  • Mamdouh Salameh on September 04 2023 said:
    The EU’s proposed ban on internal combustion engines (ICEs) from 2035 onwards doesn’t only pose an imminent threat to European automakers particularly Germany’s but also to Europe’s EV industry.

    The ban will prove as disastrous if not more to both the ICE’s and EV’s industries as the EU’s flawed and hasty policies to accelerate energy transition from fossil fuels to renewables which precipitated the worst energy crisis Europe faced since the Second World War 2 and which later morphed into a global energy crisis as a by the Ukraine conflict.

    Europeans may rebel against the proposed ban by prolonging the use of their ICEs for few more years and refusing to replace them with EVs thus resulting in a collapse of both European ICE and EV industries.

    Moreover, European EV manufacturers stand no chance against China’s cheaper EVs unless the EU decides to impose tariffs on Chinese EV exports prompting China to retaliate with tariffs of its own on European exports. The main losers will be Germany’s car manufacturing industry and the rest of the EU’s.

    Dr Mamdouh G Salameh
    International Oil Economist
    Global Energy Expert

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