BMW, the German car manufacturing giant, is sounding the alarm about an upcoming EU ban on the sale of gasoline and diesel cars set for 2035. The company’s executives state that this ban is “no longer realistic” given the current state of electric vehicle (EV) sales in Europe. They predict that such a ban could lead to a “massive shrinking” of the European auto industry.
European carmakers are facing challenges as they struggle to sell EVs. Many countries are ending subsidies that previously supported these sales, while low-cost vehicle manufacturers from China are steadily increasing their market presence.
Last year, EU member states approved regulations that aim to halt the sale of new carbon dioxide-emitting cars and vans by 2035. These rules require a 55% reduction in CO2 emissions for new cars and a 50% reduction for new vans between 2030 and 2034, compared to 2021 levels. The goal is to achieve 100% CO2 emission reductions for both new cars and vans by 2035.
As part of the regulation, the European Commission plans to evaluate the EU’s progress toward these targets in 2026. The Commission will then decide if any adjustments to the targets are necessary.
At the Paris Automotive Summit on Tuesday, BMW CEO Oliver Zipse expressed concerns that the ban could jeopardize the European automotive industry. He stated, “With today’s assumptions, this regulation will lead to a massive shrinking of the industry as a whole,” according to Bloomberg.
This year, electric vehicle sales in Europe have been struggling. In Germany, for instance, EV sales have dropped sharply after the government ended subsidies at the close of 2023.
In light of declining EV sales, the European Automobile Manufacturers’ Association (ACEA) called for immediate action last month. They urged EU institutions to implement relief measures to counter the ongoing decline before new CO2 targets for cars and vans take effect in 2025.
ACEA emphasized that European automakers are committed to this transition. However, they pointed out that “the other necessary elements for this systemic shift are not in place.”
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