BMW boss calls EU plans to phase out internal combustion engines by 2035 “unrealistic”

During a speech at the Paris International Motor Show, Zipse said that the implementation of the EU plans will lead to the downfall of the entire automotive industry and threaten the existence of the automotive industry as a sector of the economy.

The head of BMW noted that the massive transition to electric vehicles will require a global change in materials and component suppliers. This could lead to a complete change in supply chains and, consequently, the elimination of participants in these chains from the market.

Zipse also emphasized that car production in Europe without government subsidies is almost impossible without losses for car manufacturers, especially with increasing competition from Chinese manufacturers, for example, BYD.

According to the agency, some European car manufacturers, such as Volkswagen, Renault and Stellantis, may not meet the European Commission’s plans for the proportion of electric vehicles sold. For this reason, they could face fines of up to 15 billion euros, says Bloomberg.

According to the mutual insurance company HUK Coburg (Germany), in the third quarter of 2024, only 3.9% of new or used car buyers opted for electric vehicles. At the same time, 34% of electric vehicle owners, when buying a new car, choose a car with an internal combustion engine.

HUK Coburg found that the share of electric vehicles in total sales increased by 0.1% in the third quarter and stood at 2.9% at the end of the quarter. By the end of 2024, progress in Germany’s transition to electric vehicles will return to 2021 levels, the association added.