Carmaker BMW’s CEO called Tuesday for the European Union (EU) to walk back its ban on gas-engines in order to decrease dependence on China’s battery supply chain, according to Reuters.
The EU passed a law in March 2023 requiring all new cars sold from 2035 have zero carbon emissions, effectively banning traditional combustion engines. Now, BMW CEO Oliver Zipse is calling for regulators to walk back the rule, arguing a policy shift would help European automakers combat Chinese competition and reduce reliance on the country’s electric vehicle (EV) batteries, Reuters reported.
“A correction of the 100% BEV [battery electric vehicle] target for 2035 as part of a comprehensive CO2-reduction package would also afford European OEMs less reliance on China for batteries,” Zipse said at the Paris Motor Show, according to Reuters. “To maintain the successful course, a strictly technology-agnostic path within the policy framework is essential.”
Zipse added that the 2035 cutoff is “no longer realistic,” and that, “[under] today’s assumptions,” the policy would “lead to a massive shrinking of the [EU auto] industry as a whole,” the Guardian reported.
China controlled 11% of the European electric-car market as of June, and is the largest manufacturer of EV batteries, producing 66% of the world’s battery cells as of May 2023. Meanwhile, the German automotive industry, which accounts for roughly 5% of the country’s gross domestic product, has struggled, with car sales down 4.7% on the year in the first half of 2024.
The EU voted to impose new tariffs on Chinese EVs on Oct. 4, placing an additional levy ranging from 7.8% to 35.3% in addition to a 10% tax already in place.
In addition to BMW, EU automakers VW and Renault have also called for regulators to loosen or delay vehicle emissions targets after experiencing lower-than-expected EV sales, according to Reuters. Volvo, Ford and Mercedes-Benz have all abandoned key EV goals since February, with experts previously telling the Daily Caller News Foundation the shifts in corporate strategy reflect a slackening of demand amid consumer aversion to lower mileage ranges, a lack of charging infrastructure and higher prices.
BMW did not immediately respond to a request for comment.
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