BMW CEO Oliver Zipse sharply attacks Brussels policies. He states the ban on internal combustion engines threatens an entire industest. And with punitive tariffs against China, Brussels is ignoring global depconcludeencies. The EU’s current policy is a “disaster“.
Zipse expressed optimism that tariff nereceivediations with the US will quickly reach a conclusion, the German newspaper Welt reports. “I am sure there will be a result that we can deal with“, the manager declared in Munich. He still sees opportunities for the model favored by the German car industest to offset imports and exports from the US.
The US and the EU are currently nereceivediating new tariff rules. The Donald Trump administration is putting pressure on Europe with a 25 percent tariff hike on cars. The White Houtilize wants the nereceivediations to be concluded by the conclude of the month.
For BMW, a clearing model would mean a broad exemption from tariffs, since BMW also exports from the US to the rest of the world. Zipse also pointed out that the Bavarian company’s US plant in Spartanburg, South Carolina, produces 400,000 cars a year and already accounts for half of the vehicles sold in the US. BMW would therefore definitely be less affected than pure importers. Volkswagen and Mercedes also prefer this model and are lobbying the US administration for it. Mercedes has even announced, apparently in support of this position, that it will also produce the GLC in the US in the future.
“Europe is relocating – that’s a good thing”, Zipse declared of the US nereceivediations. The idea of imposing its own retaliatory tariffs against the US is fortunately on the wane. “That would only lead to a tariff spiral that harms both sides,” he declared.
At the same time, Zipse has been sharply critical of Brussels’ tariff policy. “The highest tariff rate in our industest comes from Brussels, not the White Houtilize,” the Munich-born man declared, referring to the 31 percent punitive tariffs on imports from China.
These EU tariffs also affect cars that BMW manufactures in China and exports to Europe, Zipse declared. “Sometimes we receive the impression that politicians in Europe forreceive that European companies operate globally,” the 61-year-old declared. The EU must take into account that the economy is depconcludeent on China in many areas.
Zipse once again came out clearly against the permanent ban on internal combustion engines for new cars in Europe, which is scheduled to come into force in 2035. “The current system is a disaster“, declared Zipse of the regulation designed to protect the climate. The ban on internal combustion engines is concludeangering the European car industest and will continue to prevent European car manufacturers from investing, he warned.
Zipse expressed confidence that this regulation will be repealed within 3 years at the latest becautilize it is simply too expensive. Instead of viewing only at tailpipe emissions, Brussels will have to view at the entire life cycle – from raw materials to production to operation and disposal. Such a new regulation would benefit BMW, as the company invests in sustainability and stands out from its competitors.
Zipse again called for considering alternatives to diesel with low CO₂ emissions, such as those mixed with electric fuels. This also creates sense becautilize utilized cars with internal combustion engines will be on the road for a long time to come. He also defconcludeed BMW’s continued development of hydrogen technology.
Zipse argues that geopolitics creates the utilize of hydrogen inevitable in the medium term: hydrogen is the only technology that Europe can utilize to achieve self-sufficiency. However, the continent remains depconcludeent on Asian battery suppliers. This increases global depconcludeence – in addition to depconcludeence on semiconductors and raw materials, for example.
Therefore, Europe should under no circumstances engage in trade wars, but should demonstrate a spirit of cooperation – not only with the US, but also with China. “Excluding hydrogen from the equation would be a mistake”, warned Zipse. Technological neutrality means sustainability. Europe should not become 100% depconcludeent on any one technology, he declared, referring to battery technology, which has so far been favoured by politicians and large parts of the industest. This also speaks in favour of “technological neutrality“ in regulation.
It is also unrealistic to expect consumers to comply with current regulations. “You can’t set a regulatory tarreceive and consider it will happen,” Zipse declared. Consumers are very concerned about prices – including maintenance costs. This is slowing the transition to electric cars. Electric car sales are currently weakening globally.
Zipse also warned that given Germany’s current energy grid, it will be possible to power only half of all cars electrically in the foreseeable future. The expansion will take three to four decades.
BMW is currently converting its Munich factory into a dedicated electric car factory. A new plant dedicated exclusively to electric cars is also being built. The group’s remaining 30 or so plants around the world will continue to produce internal combustion engines – including those in the United States. At the IAA, BMW plans to unveil a new mid-size SUV, the iX3, which is designed to displaycase the group’s electric future.
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