BMW boss says ban on new petrol, diesel car sales a ‘big mistake’

BMW CEO Oliver Zipse said the ban on the sale of new vehicles with petrol and diesel engines in Europe – and other places around the world – from 2035 is a misstep threatening the livelihoods of thousands of workers.

Set for introduction in 2035, the law could halve the size of Europe’s automotive industry, Zipse added, while suggesting many countries in the European Union (EU) will still not be ready for electric cars only.

The comments published on BMW Blog come days after the German coalition government fell apart, prompting a general election set for 23 February 2025 while the nation’s auto industry faces increasing pressure.

The Italian government recently urged the EU to revise the ban, asking for a “broader array” of options instead of battery and hydrogen-fuel cell vehicles, a call a newly elected German government may also join.

Zipse became BMW CEO in 2019 and has been outspoken on the move to completely outlaw the sale of new cars with internal combustion engines (ICE) previously.

When EU lawmakers locked in the ban after deliberations in 2022, Zipse said, “It’s wrong to switch off the combustion engine in Europe”.

“The industry will look different in terms of scale and structure than it does today if it goes to just one technology,” he explained.

The BMW boss’s comments echo those of Toyota Chairman Akio Toyoda, who last month said Japan’s plan to ban sales of new petrol and diesel-powered vehicles – also set for 2035 – would lead to millions of job losses there.

“There are 5.5 million people involved in the automotive industry in Japan. Among them are those who have been doing engine-related [jobs] for a long time,” the Toyota Chairman said.

“If electric vehicles simply become the only choice, including for our suppliers, those people’s jobs would be lost.”

The two car makers are not anti-emission policy, with BMW in full support of mandated CO2 reduction laws in Europe, while Toyota has consistently pushed a ‘multi-pathway’ powertrain strategy – including both petrol/diesel and electric vehicles – for several years.

In fact, in September 2024 Toyota and BMW announced a partnership to build a mass-produced hydrogen fuel-cell vehicle.

At the 2024 Paris motor show in October, Automotive News reported Zipse saying: “A correction of the 100 per cent 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.”

“To maintain the successful course, a strictly technology-agnostic path within the policy framework is essential.”

Yet Zipse’s remarks come as the German industry faces pressure, both from lower demand in export markets including China, as well as increased competition at home.

The challenging conditions saw BMW – which also runs Mini and Rolls-Royce brands – issue a rare profit warning in September 2024, despite overtaking Tesla in Europe’s electric car sales race for the first time in July.

The decision was made after the German car maker reported a 64 per cent fall in profits in the third quarter of 2024, while Mercedes-Benz suffered a 54 per cent drop over the same time frame.

The higher tariffs were viewed as a threat to Germany’s $US1.2 billion ($AU1.85 billion) worth of annual petrol and diesel-engined vehicle exports to China and likely to start a trade-war.

This seems already underway with French President Emmanuel Macron arguing China’s new tariffs on French Brandy exports were “pure retaliation”, although China and the EU have been in constant dialogue and appear set for alternative measures. 

Australia has no national official plan to ban petrol and diesel-powered new-car sales, although the ACT (Australian Capital Territory) government will ban sales of new petrol and diesel-powered vehicles in the capital from 2035.

Australia’s New Vehicle Efficiency Standard (NVES) reduces CO2 vehicle emissions over four years from 2025 to 2029, but does not go as low as zero at any point.

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