Europe must reconsider its plan to ban new fossil fuel-emitting cars by 2035 in order to reduce its dependence on China’s battery supply chain, according to BMW’s CEO Oliver Zipse. Zipse emphasized the importance of playing to Europe’s technological strengths and exploring alternative fuel options such as e-fuels, biofuels, and hydrogen fuel cells.
Zipse expressed concern over the growing pessimism in Europe and called for a new regulatory framework to ensure the region remains competitive. He suggested revising the target of 100% battery electric vehicles by 2035 to lessen Europe’s reliance on Chinese battery production.
The EU’s landmark law, passed in March 2023, aims to achieve zero CO2 emissions from all new cars by 2035. However, carmakers like BMW, VW, and Renault, along with the Italian government, are pushing for flexibility in meeting these targets to avoid heavy fines and address lower than expected EV sales.
While Germany rejects an early review of the CO2 targets, France’s auto association suggests revisiting the targets in 2026. The industry calls for a collaborative approach to ensure a smooth transition to cleaner technologies.