“The EU puts the European car industry at risk”, says the President of BMW. Poverty as a political goal
The EU's pledge to ban the sale of new petrol and diesel cars and vans from 2035 poses an 'imminent risk' for European automakers, who are unlikely to win the upcoming EV price war with their Chinese competitors, BMW chairman Oliver Zipse told the Financial Times.
“ I want to send a message: I see this as an imminent risk ,” Zipse said.
The executive, however, said BMW is in a better position to compete with Chinese manufacturers, most of which target buyers of cheaper and smaller EVs. An understandable affirmation in view of the confirmation of the mandate by the shareholders.
However, " the basic car market segment will either fade away or no longer be made by European manufacturers ," Zipse told the FT.
In March, European Union member states passed an emissions regulation under which the lockdown will end sales of new carbon-emitting cars and vans in 2035.
The new rules aim to reduce CO2 emissions by 55% for new cars and 50% for new vans from 2030 to 2034 compared to 2021 levels, as well as reduce CO2 emissions by 100% for both new cars than for vans from 2035.
The historic deal was made possible after Germany – the world's largest economy, largest car market and largest automaker – applied for and was granted an exemption for synthetic fuels. Germany wanted sales of new cars with internal combustion engines running on e-fuels to continue beyond 2035, and it got that exemption.
However, this type of fuel requires an enormous amount of energy to produce and would cost prices that would normally make it accessible only to a handful of the super-rich for very high-performance cars. E-fuel remains something of a toy for billionaires.
German auto industry's slump in exports to China in Q1 2023 could be the start of a new long-term trend of "major disruption" in German-Chinese trade as China's EV boom accelerates , researchers from the IW institute in Cologne said in a report in June.
“There appears to be major disruption in the automotive sector, especially with regards to China's growing prominence as an exporter of electric cars,” the report's authors wrote.
The future of the German and European car is in museums, but thanks to the powers that be in Brussels.
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The article “The EU puts the European car industry at risk”, says the President of BMW. Poverty as a political goal comes from Scenari Economici .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/la-ue-mette-a-rischio-lindustria-europea-dellauto-parola-di-presidente-della-bmw-la-poverta-come-obiettivo-politico/ on Mon, 04 Sep 2023 19:52:23 +0000.