Cars & Concepts
BMW CEO Calls for Reevaluation of EU’s 2035 Gas-Engine Ban to Mitigate Reliance on Chinese Batteries
Oliver Zipse, the chief executive of BMW, urged for a halt on Europe's decision to eliminate sales of new gas-powered vehicles by 2035 on Tuesday. He contends that this move will make European car manufacturers dependent on battery supplies from China.
During a press conference at the 2024 Paris auto show, which included Reuters among its attendees, Zipse expressed a growing sense of skepticism regarding the goal to achieve solely electric vehicle sales by 2035. He suggested that revising this goal could potentially reduce European car manufacturers' dependency on Chinese battery imports.
Conceptual design for the BMW Vision Neue Klasse X.
In 2021, the European Union set a goal, which led to member nations implementing tougher emissions regulations in March 2023 to align with the 2035 objective. Both car manufacturers and the Italian government have consistently contested the legislation. However, Volvo along with 49 other firms have collectively issued a plea for the EU authorities to remain firm on their established path.
BMW has established agreements with CATL from China and Samsung SDI from South Korea for its battery needs. These suppliers operate manufacturing sites on European soil. However, German car manufacturers face expectations to source their batteries from Europe-based firms. BMW intended to fulfill this by engaging in a $2 billion agreement with Northvolt of Sweden, yet the deal was scrapped by BMW earlier in the year. Following this, Northvolt revealed intentions to reduce expenses and downsize its business activities.
Conceptual design for BMW's Vision Neue Klasse X
BMW is set to increase its battery demand as it boosts production for its upcoming Neue Klasse electric vehicles. These new models will transition to cylindrical battery cells and adopt an architecture designed specifically for electric vehicles. The company plans to commence production in two European locations in 2025, and intends to expand production to a facility in Mexico by 2027.
Europe is worried that electric vehicles from China could challenge its own manufacturers. Even though the EU has imposed extra tariffs on Chinese EV imports, adding to the usual 10% car import fee, they are thinking about reducing these tariffs for some Chinese car producers.
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