Outgoing BMW boss hits out at 'punitive' EU measures

Outgoing BMW Group chairman Oliver Zipse has ended his tenure at the car giant by renewing calls on European legislators to relax its rules on localised production and CO2 emissions or risk damaging the automotive industry in the region. The 62-year-old has served at the chairman of the Munich-based firm since 2019, but will now retire after 25 years at the firm. The BMW Group’s Annual General Meeting served as his final work commitment, before his successor, current group production boss Milan Nedeljkovic, takes over tomorrow (Thursday 14 May). In his final address as chairman, Zipse outlined plans to make BMW “antifragile” so that it can grow in strength when faced with future global crisis, and highlighted that the 2.46 million cars the firm sold in 2025 were up on the previous year. But Zipse also hit out again at several EU rules that he felt were damaging to a global firm such as BMW. That included the EU’s planed ‘Made in Europe’ initiative, which will require around 70% of an EV to be produced within the bloc to qualify for EV grants and tax incentives. Zipse said that “the European Commission generally has good intentions, but the execution often falls short”, adding that any industrial policy should both recognise that exports drive grows, and allow for continued cooperation with international partners. He added: “E-mobility, in particular, is not possible without global value chains.” Zipse again criticised the EU’s requirement to progressively cut CO2 emissions before now and 2035. He reiterated his previous argument that the rule “does note support technology-openness and ignores market realities”. He added: “Following the ban on the supply side, restrictions on the demand side are now also set to be introduced. This benefits neither customers, nor European industry, nor the environment.” Zipse says that BMW “shows how it can be done” with a technology-neutral approach, claiming that it has outperformed its EU CO2 target by a significant margin, with a focus on reducing the firm’s “overall impact” by reducing carbon emissions throughout its production chain. The outgoing chairman also hit out at what he called “punitive” tariffs of up to 35% on EVs imported from China. Nothing that BMW exports a significant number of vehicles from China into the EU, Zipse said the tariffs were “hurting us”, which “cannot be in the EU’s interest”. He added: “Tariffs are like a boomerang. Who pays them? The customer.” BMW also faces tariffs of 15% on cars imported into the US, and cars shipped from that market to the EU. Zipse did praise the EU its plans to scrap tariffs on goods imported from the US, but noted that new rate is yet to be implemented. Calling the debate over tariffs “highly complex”, Zipse added: “The fundamental principle here is that tariffs do not protect; they cause damage – on all sides. A global production and supply network is a strength. Any industry that is supposedly shielded by tariff barriers is weaker – and ultimately shrinks.” Overall, Zipse said that “the European Commission does not reward innovation and expert orientation, but rather downsizing. It is replacing effective market mechanisms by bans and protectionism”. Zipse signs off Zipse will now depart the BMW Group after 35 years, being replaced by Nedeljkovic in a move announced last December. He hinted that the handover would not signal a major change in strategy for BMW, noting that the overall strategy was set by the Board of Management, which Nedeljkovic already serves on. Highlighting BMW’s heavy investment in the Neue Klasse EV project and expansion of its global footprint, Zipse said: “Resilience is a word we hear a lot these days. But we are taking it a step further: We are making BMW antifragile. That means more than being resilient. Resilient companies withstand challenges, while antifragile companies use them to become better and to grow. This mindset transforms uncertainty into strategic clarity and pressure into momentum.”

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Outgoing BMW boss hits out at 'punitive' EU measures

Forthcoming rules on localised production risk causing more harm than good, says Oliver Zipse as he retires

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Outgoing BMW boss hits out at 'punitive' EU measures

Forthcoming rules on localised production risk causing more harm than good, says Oliver Zipse as he retires

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