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With few exceptions like Volvo and Polestar, most automakers oppose the European Union’s plan to ban sales of new combustion-engine cars from 2035. Although the legislation doesn’t explicitly outlaw ICEs, it requires that vehicles emit zero emissions. In practical terms, that amounts to the same thing. Well, unless hydrogen-burning engines and synthetic fuels manage to break through in just nine years.
From the beginning, BMW has pushed back against the proposed cut-off date, warning that Europe’s automotive industry could implode. If the ban goes ahead unchanged, tens of thousands of employees could lose their jobs. Munich also doubts that markets will be ready to fully embrace EVs by 2035.
Demand for electric cars in Europe remains uneven, shaped by several factors, including an underdeveloped charging infrastructure and higher EV prices compared to equivalent gasoline models. German Chancellor Friedrich Merz is now aligning with BMW and other carmakers opposed to the 2035 ICE ban.
Bloomberg obtained a letter Merz sent to European Commission President Ursula von der Leyen. Why now? The EC will meet on December 10 to provide an update on the 2035 zero-emission target. Merz wants the legislation revised to allow plug-in hybrids beyond the middle of the next decade. Likewise, he believes “highly efficient” combustion vehicles should remain on sale after 2035.
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Merz also argues that range-extending gas engines should be exempt. If you’re unfamiliar with the technology, these vehicles use an ICE as a generator to charge a battery, while electric motors drive the wheels. The engine is not mechanically connected to the wheels. BMW used a range extender in the i3 and is reportedly considering bringing it back for its largest SUVs.
According to Bloomberg, Merz writes in the letter: “Our goal should be a technology-neutral, flexible, and realistic CO2 regulation that meets the EU’s climate protection targets without jeopardizing innovation and industrial value creation.”
He also endorses synthetic and renewable fuels to reduce emissions from existing cars. BMW is a strong supporter of alternative fuels, especially hydrotreated vegetable oil (HVO100) for diesels and eFuel for gasoline engines.
We’ll have to see how this unfolds, but one thing is clear: automakers need clarity. While 2035 is still nine years away, new products take time to develop. Companies need at least four years to bring a model to market. Not knowing whether a car will be legal to sell in all 27 EU member states after mid-2035 raises major concerns about a product’s viability.
Source: Bloomberg
