The European Union (EU) pledged to ban the sale of new gasoline and diesel cars and vans by 2035, however, BMW warns this will bring an “imminent risk” to Europe’s automakers.
“I want to send a message: I see that as an imminent risk,” BMW chairman Oliver Zipse told the Financial Times. According to Zipse, Europe’s car manufacturers are unlikely to win a looming EV price war with their Chinese competitors.
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BMW Warns Gasoline Car Ban Poses "Imminent Risk" To European Automakers https://t.co/wHV17Ip7ss
— zerohedge (@zerohedge) September 5, 2023
The executive said BMW was in a better position to compete with Chinese manufacturers, however, because most of them targeted buyers of cheaper and smaller electric vehicles. “The base car market segment will either vanish or will not be done by European manufacturers,” Zipse continued.
European Union member states in March approved an emissions regulation approving a new law requiring a 55 percent drop in carbon emissions across new car fleets by 2030. By 2035, all new cars must produce zero carbon dioxide.
This deal was made possible after Germany sought and won an exemption for e-fuels. Germany wanted the sale of new cars with internal combustion engines if they run on e-fuels to continue beyond 2035.
According to a report in June, researchers at the IW institute in Cologne predicted that the decline of Germany’s auto industry to China in the first quarter of 2023 could be the beginning of a long-term trend of “strong disruption” of German Chinese trade as China’s EV sales accelerate.
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