Here’s some potentially good news for BMW and other automakers that believe combustion engines still have a future. The European Commission is accelerating the review process for the 2035 sales ban on new gasoline- and diesel-powered cars. Instead of meeting next year to decide the fate of the zero-emissions target, discussions will now take place before the end of this year.
The CO2 review was brought forward after talks between European Commission President Ursula von der Leyen and high-ranking automotive industry officials. Held this past Friday, the “strategic dialogue” reportedly lasted for hours, and the parties will meet again before December.
Possible outcomes include allowing sales of combustion-engine cars beyond 2035 if they run on carbon-neutral fuels. Plug-in hybrids and EVs with range-extending gasoline engines could also remain on the market. It’s too early to know for certain, but it’s increasingly likely there won’t be a definitive cut-off date for ICE.
Automakers are mounting pressure on the EU, arguing it’s too soon to phase out traditional powertrains. BMW has long insisted that Europe isn’t ready to go all-in on EVs. Ending gas engine production would have massive repercussions, leading to tens of thousands of job losses. On top of that, charging infrastructure is unlikely to be fully developed across the continent in just ten years. Of course, EVs remain significantly more expensive than their gasoline counterparts.
Despite massive investments in Neue Klasse EVs, BMW still projects combustion cars will account for half of its annual sales by 2030. The company has invested heavily in making its inline-six and V8 engines Euro 7 compliant, securing their future. If the larger engines survive, it’s safe to say the three- and four-cylinder units will also remain part of the lineup.
BMW CEO Oliver Zipse has repeatedly criticized an outright ban. As recently as this week, he warned at the IAA Mobility Show in Munich that a premature end to ICE “can kill an industry.” He’s not alone. Mercedes CEO Ola Källenius echoed that if nothing changes before 2035, Europe’s car industry could “collapse.”
While most automakers active in Europe are urging the EU to revise its ban, not everyone shares this view. Brands like Volvo, Polestar, and Kia are in favor of the ambitious zero-emission goal.
Source: Reuters
