BMW Chief Slams EU's Combustion Engine Policy
Economy / Finance

BMW Chief Slams EU’s Combustion Engine Policy

The BMW Group’s CEO, Oliver Zipse, has publicly voiced concerns regarding several aspects of the European Commission’s recently unveiled regulations concerning the future of combustion engines, signaling a potential clash between industry and regulatory ambition. In an interview with the Handelsblatt, Zipse characterized the stipulations, particularly those impacting large commercial fleets from 2023, as demonstrably falling short of expectations.

Zipse’s most vehement criticism focused on the Commission’s planned implementation of differentiated quotas across various member states, a structure he described as an “indirect combustion engine ban”. This patchwork approach, he argues, introduces unnecessary complexity and undermines the goal of a unified transition to electric mobility. The CEO questioned the logic of varying requirements, suggesting a lack of coherence that could hinder long-term investment and innovation.

Beyond the fleet regulations, Zipse expressed disapproval of the Commission’s promotion of smaller, more affordable electric vehicles. He deemed these incentives “arbitrary” and drew a parallel to housing market regulation, questioning the rationale behind incentivizing vehicle size rather than broader technological innovation. He cautioned against the potential for a “protectionist measure” that could ultimately prove detrimental to the EU’s own industrial competitiveness.

However, Zipse’s critique wasn’t solely limited to what he perceived as regulatory overreach. He also argued that the EU is not progressing quickly enough in other crucial areas, specifically regarding the adoption of green steel and sustainable renewable fuels. The delayed implementation of these measures, slated to take effect in 2035, represents, in Zipse’s view, a missed opportunity to significantly reduce carbon emissions that could be achieved through immediate action.

The BMW CEO’s outspoken remarks underscore a growing tension within the European automotive sector, highlighting a need for a more nuanced and collaborative approach to achieving the EU’s ambitious climate goals. They also raise questions about the Commission’s policy design and its impact on the long-term viability of Europe’s automotive industry. The coming months will likely see intensified dialogue between Brussels and major automakers as the Commission seeks to refine its strategy and ensure a sustainable pathway toward a zero-emission future.