A tough statement from BMW’s top manager in an interview with KL

Munich is bathed in the grip of an earlier-than-usual heat spell. BMW:n the office space thermometer shows Thomas Beckerin including 35 degrees in the early evening.

The heat wave shaking the whole of Europe provides quite a dramatic background for the remote interview. Especially when Becker is responsible for the Bavarian car giant’s sustainable development policies and social relations.

His task is to put into practice the strategy of a struggling car giant in the midst of massive changes. The electronic revolution, China’s emerging automotive industry and climate change keep Becker busy.

“We have to give up in the midst of great uncertainty without certainty about the future direction. This would be easy if we knew when the balance would be reached,” he sums up.

Did the train go already?

It’s time to present BMW’s assessment of the current situation and the actions it requires. The first thesis hardly encourages those who put their hopes in electric cars. Becker’s central message is that the train has already left.

“In recent years, things were oversimplified. Everyone assumed that electric cars would come by 2030, but that didn’t happen,” he says.

A ten-year transition period doesn’t seem to be enough either. BMW considers the combustion engine restrictions set by the Commission for the year 2035 to be unrealistic.

According to Becker, this is due to the division of the European car market into the rapidly electrifying North and the lagging South. As a counterweight to the Nordic countries, the electrification of large car markets such as Poland, Spain and Italy is progressing more leisurely.

In the current year, the share of fully electric cars in the total European market rose to 19.7 percent in January–April. In the three countries mentioned above, their market share is between 5 and 8 percent.

“For this reason, we will not see a fully electric Europe. It will not succeed.”

A large list of medicines

So what should be done? The medicines offered by the premium manufacturer come as if from a pharmacy shelf.

Europe’s comprehensive charging network, taxation supporting electric cars and consideration of the entire life cycle of vehicles up to the production process come to the fore.

“Power lines are not the only means available for reducing carbon dioxide. It is worth considering renewable fuels, recyclable battery materials, the origin of electricity and the opportunities offered by green steel and aluminum,” he lists.

Becker also emphasizes the importance of low operating costs. The man from the premium brand would shift attention from the prices of electric cars to the price of electric cars.

Electricity price with wallpaper

He suggests, somewhat surprisingly, that the state subsidies enjoyed by the Chinese automotive industry are not the most significant difference between China and Europe after all. According to Becker’s interpretation, the popularity of electric cars in the world’s largest car market is explained by the price of electricity.

“Especially the Chinese who drive cars in the cheaper price category can be sure that they save a lot of money with each charging. But when Europeans see the charging prices, they can’t be so sure. Rather the opposite,” Becker says in Finnish.

An interesting point of comparison can be found in the fuel prices raised by the Iran war. In Europe, every effort has been made to contain the shock caused by the price spike.

“In our opinion, this is right, but shouldn’t we also look at the pricing of electricity? We are proposing a common European strategy, the starting point of which is the lowest possible price of electricity.”

The charging infrastructure is fine

On the other hand, according to him, the shortcomings in the availability of charging infrastructure should be fixed as soon as possible. The differences within Europe follow the market shares of electric cars: where there is a demand for charging electricity, there the supply also increases.

The problem would require consistent political guidance.

“Europe needs a much more uniform charging infrastructure than the current one. We hope that the EU and several of its member states will significantly speed up the construction of the charging network,” Becker exclaims.

Renewable fuels rank high on Becker’s list. The possibilities of fuels processed from animal and plant waste have not been utilized nearly to their full extent, he estimates.

“For example Liquid the renewable fuels produced have enormous potential. They alone do not replace fossil fuels, but can significantly reduce their demand.”

Bring steel to the taluks

Becker also suggests a more comprehensive review of the life cycle of electric cars than is currently the case. For example, an electric car made of carbon-neutral steel would be taken into account in the emission balance sheets of car manufacturers.

“We have proposed that we could use carbon-neutral steel to achieve emissions targets. Instead of fines, we would rather pay the steel industry more money than is currently the case.”

Taxation can also be used to steer the demand for cars in a direction with lower emissions. The premium manufacturer would see a reduction in taxation, especially on company cars.

“The key to more affordable electric cars than today is a strong market for company cars. From there, electric cars in reasonably good condition and reasonably priced will be transferred to the used car trade.”

“This is a significantly more efficient way than paying subsidies for the purchase of small and bulky electric cars,” says Becker.