BMW chief slams EU combustion engine ban, German industry rules

Chief executive of car giant BMW, Oliver Zipse, has sharply criticized Germany's policy for the industry and the EU combustion engine ban on new petrol and diesel cars from 2035.

"I consider the political stipulation to phase out combustion cars to be negligent," he told the Handelsblatt on Friday.

Raw materials for the mass construction of electric cars such as lithium, cobalt and rare earths are lacking in Europe, said Zipse. Europe therefore risks becoming dependent on imports and vulnerable to political blackmail, he added.

"And where will people charge all those e-cars? There will be no comprehensive infrastructure for electric cars in Europe in 2035," said Zipse. He warned: "In the end, this could even become a social problem. When mobility is no longer affordable."

A ban without a long-term viable alternative would stifle the growth of an entire industry, he said.

Under the regulations passed by Brussels in March, new vehicles with combustion engines can only be registered in the EU after 2035 if they run on climate-neutral e-fuels. This was a compromise, as Berlin in particular had objections to a blanket ban.

The use of e-fuels, which can be produced from water and carbon dioxide extracted from the air using renewable power, in road traffic is highly controversial due to their energy-intense production.

Zipse also criticized the German automotive industry, saying it was lagging behind China and focused too much on battery power, neglecting other sources.

"Is it wise," he asked, "as a continent with a strong industry but without its own access to essential battery raw materials, to promote only this one technology?"

China has developed and promoted its car industry along the entire value chain with a clear industrial policy strategy, said the BMW chief.

In order to build masses of e-cars, the availability of raw materials would have to be ensured, "and that is where Europe has a structural problem."