BMW CEO Oliver Zipse, speaking at the Munich-based carmaker's annual general meeting, remarked that while the European Union's CO2 targets for 2035 were well-intentioned, they were poorly executed. 'The current proposal is simply not technology-neutral. Furthermore, it ignores market reality.' For more than 90 percent of vehicle volume, a de facto ban on internal combustion engines remains in place. Additionally, strict quotas for corporate fleets are planned. 'Following the ban on supply, a ban on demand is set to follow. This benefits neither customers nor the industry in Europe.'
At the end of 2025, the EU Commission proposed that CO2 fleet emissions for new cars must only decrease by 90 percent compared to 2021 levels starting in 2035, instead of the previously planned 100 percent. This would allow new hybrid vehicles to be registered even after that date. However, automakers must offset these emissions through measures such as the use of green steel or the blending of climate-neutral fuels. Simultaneously, stricter CO2 rules apply to fleet operators, such as car rental companies.
The German industry association VDA also advocated for a relaxation of the regulations. This could secure around 50,000 jobs that would otherwise be lost in a full transition to electromobility, the VDA reported. The concept of excessive regulation has failed, said VDA President Hildegard Müller. Crucial to success is ensuring that climate protection is a viable business model integrated with growth and prosperity. 'Technological neutrality must not be mere lip service; it must be practically achievable,' she said. The EU Commission's current proposals are insufficient in this regard. 'Instead of a course correction, instead of the necessary flexible path, they are doubling down on further regulation - and changing nothing in the process.'
Overall, the association expects a further 125,000 jobs to be lost by 2035; even if combustion technology were maintained, 75,000 positions would still disappear. The manufacturing of an EV is less complex and requires fewer parts than that of an internal combustion engine vehicle. Consequently, jobs are being lost particularly among suppliers. New jobs created during the transformation toward the climate-neutral and digital mobility of the future are being established abroad, given the poor and internationally less competitive local conditions.
(Report by Christina Amann, edited by Ralf Banser. For inquiries, please contact our editorial office at Berlin.Newsroom@thomsonreuters.com (for politics and economics) or Frankfurt.Newsroom@thomsonreuters.com (for companies and markets)
