Automotive News Europe — 2024-03-21
Automotive Industry
Zipse says a comprehensive review of CO2 fleet legislation in the EU is essential.
BMW CEO Oliver Zipse said the European Union should review its CO2 targets as pressure on automakers to cut carbon emissions tightens 2025 ahead of a full ban on fossil-fuel combustion engines in 2035.
"We believe a comprehensive review of CO2 fleet legislation in the EU is essential," Zipse said during the company’s annual results conference on Thursday 21 March 2024.
Zipse's comments came despite BMW saying it had reduced its own CO2 emissions fleet to an average 20% below its required European target for 2023.
Zipse said 2025’s tightening of CO2 targets requiring a 25% reduction of fleet emissions from new passenger cars sold in Europe compared with 2021 figures will be tough for the industry.
"By the end of 2025 the world will note that it's not that easy," Zipse said. "By then the pressure then will be significant for the European automotive industry."
Volkswagen Group has also called on the EU to soften 2025 demands. "It does not make sense that the industry has to pay penalties when the framework conditions for the EV ramp up are not in place," VW Group CEO Oliver Blume said during the company's annual results presentation during the second week of March 2024.
The call for a review was also echoed by Renault CEO Luca de Meo in an open letter to EU legislators published during the third week of March 2024.
2025 average fleet CO2 emissions will be subject to tougher Worldwide Harmonised Light Vehicle Test Procedure (WLTP) regulations, replacing the less onerous New European Driving Cycle (NEDC) rules.
Failure to comply with the new rules will trigger a €95 fine for every vehicle registered in the EU, multiplied on an annual basis by each CO2 g/km above the target.
Zipse said BMW was on target to hit the tougher 2025 targets as it looked to ramp up BEV production to 20% of its total. In 2023 15% of BMW sales globally were full-electric, the company said.
BMW Group's global BEV sales would hit 50% by 2030, with Europe "maybe higher," Zipse said.
Despite BMW’s confidence about hitting targets, Zipse warned of resistance from customers in the regulatory push to EVs.
"Something that's not taken into account that it's the free decision of millions of customers," Zipse said. "It's not just like the energy infrastructure where you can switch something off and then something else happens automatically."
The EU has said it will carry out a review in 2026 to gauge progress on the move to zero-emission vehicle sales.
Mini, Rolls-Royce to go electric
At the results conference, BMW showed the Vision Neue Klasse X concept previewing the first model from the company’s new battery-electric platform. The production version of the midsize SUV will be built in BMW's new factory in Debrecen, Hungary. A sedan version will follow from the company’s Munich plant in 2026, followed by other variants.
The global platform will underpin six models in total, BMW said.
BMW’s flagship Munich plant will switch to only building EVs in 2027, the company said.
The group’s Mini and Rolls-Royce brands will go 100% electric "from the early 2030s onwards," BMW said.