BMW warns: 2035 could bring collapse of the auto industry if combustion engines are banned

BMW criticizes EU plan: ban on combustion engine cars from 2035 threatens jobs and factories

The European Union's decision to ban the sale of new cars equipped with combustion engines from 2035, part of the ambitious "Fit for 55" package, continues to generate tension and strong criticism among major automakers. The latest and most resounding warning comes from BMW boss Oliver Zipse, who claims that maintaining this plan, without an alignment with market reality, could have "serious consequences" for the future of the European auto industry.

The Pace of Electrification: An Unrealistic Goal?

One of the most important objections raised by the BMW CEO concerns the gap between the political target and the current market dynamics. Zipse warns that if the current sales pace is maintained, the share of electric cars in Europe will only reach 50% by 2035, far from the 100% threshold imposed by legislation to ensure climate neutrality.

This slow pace of mass adoption of electric vehicles is not his only concern. Zipse also highlights the isolation of the European decision: no other major region or country in the world has adopted a similar plan to completely ban combustion engines, thus putting European manufacturers at a competitive disadvantage on the global stage.

Huge Costs and Dependence on China

Zipse's warning directly addresses the financial and strategic implications of a forced transition:

• High Costs for Manufacturers: European manufacturers are incurring massive expenses for research, development and industrial conversion necessary for electrification, without currently having clear prospects of recovering these investments from the sale of electric vehicles.
• Supply Chain Dependency: Another crucial argument is related to the excessive dependence on supply chains, especially for batteries, where China holds a dominant position. An exclusive transition to electric cars could only change the nature of the dependence, without solving the competitiveness problems.

Flexibility and "Technological Neutrality"

In this critical context, Oliver Zipse advocates for “technological neutrality.” This would mean maintaining the option to market new cars with internal combustion engines after 2035, provided that they use alternative solutions to achieve emission neutrality.

The "e-fuels" compromise

Despite criticism from industry, the European Commission has already shown signs of flexibility. A compromise has been reached with member states (especially Germany) that stipulates that new combustion engines can be sold after 2035, provided they are powered exclusively by synthetic fuels (e-fuels), which are CO2-neutral.

The European Commission is set to announce a new support package for the automotive industry that could formalise these changes. But for leaders like Zipse, the optimal solution remains a broader approach, including technologies such as Plug-in Hybrid (PHEV) and even hydrogen, to meet diversified customer demand and protect competitiveness, innovation and jobs in European industry.

The ban on internal combustion engines from 2035 is a major step in the fight against climate change, but, in the view of BMW and other industry players, it risks becoming a "huge mistake" that could halve European auto business if it is not managed with more flexibility and economic realism.