Nicolas Peter, the chairman of BMW’s Supervisory Board, stated that the European Union shares responsibility for the customs dispute with the United States. Speaking to the weekly newspaper “Die Zeit”, Peter emphasized that the EU must finally implement its agreed-upon part of the accords. He argued that the US and the EU have “far more” in common than their current public statements suggest, urging both sides to rapidly ratify the trade agreement. This discussion follows an announcement by US President Donald Trump last Friday, who stated that his administration plans to levy a 25% tariff on cars imported from Europe, increasing from the previous 15%. Trump justified this rate by claiming that the EU failed to meet its obligations under the customs agreement negotiated the previous August.
Regarding the automotive sector, Peter dismissed the notion that the currently elevated fuel prices are helpful for achieving a breakthrough toward electric mobility. He doubts that the present energy shortage will spontaneously trigger sustainable momentum toward e-mobility. However, he pointed to the current demand trajectory, estimating that by 2035, “well more than half of customers will want to drive electric”. While noting that 100% adoption-and even 90%-is an unlikely scenario, he stated that under current EU law, internal combustion engines may not be permitted starting in 2035.
While reaffirming BMW’s commitment to “decarbonization” Peter warned that the currently planned path could be detrimental to Europe. As a compromise suggestion from the industry side, he proposed strictly controlling the use of Plug-in Hybrids (PHEVs). Peter sharply criticized studies indicating that many drivers fail to utilize the electric powertrain of these cars, calling it a “behavior problem” that tarnishes a climate-friendly technology that could otherwise guide the public toward general e-mobility adoption. He suggested that a potential measure would be for car manufacturers to document user behavior, even implementing sanctions. For instance, he argued that the engine power could be reduced (derated) if a driver consistently fails to charge the battery, a possibility he confirmed is technically feasible.
