Both Volkswagen chief Oliver Blume and BMW chief Oliver Zipse are calling on the European Union (EU) to relax CO2 standards for carmakers. They must sharply reduce the average CO2 emissions of all their vehicles registered in the EU from 2025.
Both Volkswagen chief Oliver Blume and BMW chief Oliver Zipse are calling on the European Union (EU) to relax CO2 standards for carmakers. They must sharply reduce the average CO2 emissions of all their vehicles registered in the EU from 2025.
The rules denounced by Blume and Zipse apply specifically to car manufacturers. At issue is the average CO2 emissions of all vehicles a brand puts on registration. In recent years, this limit has been 95 grams of CO2. However, this will become 93.6 grams from 2025. At first glance, this reduction may seem limited, but in practice it means a substantial cut for car manufacturers. Whereas they were previously allowed to calculate average CO2 emissions using the less stringent NEDC method, they must now do so using the stricter WLTP measurement method.
Demand for EVs disappoints
In practice, this means carmakers should sell many sustainable vehicles. Electric vehicles (EVs) are the most profitable in this regard as they do not emit CO2. However, Zipse argues that EV sales are disappointing in practice, putting pressure on carmakers. The top executive points out that car manufacturers have no control over what kind of vehicle consumers purchase.
That BMW in particular is opposing CO2 standards is striking. The average CO2 emissions of the company's vehicles registered in the EU in 2023 are 20% lower than European requirements. BMW is therefore well within the requirements set.
Nevertheless, Zipse is concerned about CO2 standards. The BMW chief argues that climate protection cannot be successful if it does not take customers' wishes into account. Zipse therefore calls for a major overhaul of European CO2 legislation for car manufacturers.
Volkswagen chief Blume is also critical
Zipse thus joins a recent call by Oliver Blume, top executive at Volkswagen. Blume called the EU's requirements unrealistic. Market researcher Jato previously calculated that tightening CO2 standards would mean Volkswagen would be allowed to emit 15% less CO2.
Those who fail to comply with the standards will be fined. It amounts to €95 per vehicle of the make registered in the EU. This amount is additionally multiplied by each gram of CO2 per kilometre by which the manufacturer exceeds the standard.
Like Zipse, Blume points here to the stagnant embrace of EVs. In a statement to Bloomberg, the top executive says he thinks it is unfair for the car industry to be fined if the preconditions for increasing EV production are not there. The Volkswagen top executive therefore advocates relaxing CO2 emissions standards for the car industry. Blume also calls for a critical review of the situation around electric driving in several EU member states.
Stellantis CEO Tavares: 'EU wants ordinary man or woman out of car'
Earlier, Stellantis CEO Carlos Tavares also expressed criticism of European regulations for car manufacturers. Among other things, he pointed to the costs associated with reducing CO2 emissions from cars. In practice, these costs are passed on by car manufacturers to consumers, who consequently pay more for a vehicle. Tavares therefore argued that it seems that the EU's policy aims to get the 'ordinary man or woman' out of cars.
Like Blume, Tavares is unhappy with the supporting infrastructure for EVs in many EU member states, arguing that it is inadequate. The Stellantis CEO therefore sees more in a more gradual transition to electric driving than the EU wants.
Author: Wouter Hoeffnagel
