Not Too Fast, Automakers Should Reconsider Electric-Only Strategy, BMW CEO Warns

Oliver Zipse 8 photos
Photo: BMW/Tesla
BMW Group's Electrified Vehicle LineupBMW Group's Electrified Vehicle LineupBMW Group's Electric Vehicle LineupBMW's Electric Vehicle LineupGreen charging robot MochiGreen charging robot MochiGreen charging robot Mochi
Auto manufacturers are finally ready to play ball after a lot of pushing, shoving, and intervention from global authorities to shift from combustion engines to EVs. But nothing new comes without teething problems. At a roundtable meeting in New York, Oliver Zipse, BMW’s chief executive officer, said companies need not be too reliant on a few select countries by focusing on EVs and that there’s still a market out there for ICEs.
Electric vehicles might be the future, but the auto industry needs to do a lot to ensure a smooth transition. Industry stakeholders feel there’s still a lot of leg work needed to improve infrastructure, policy, and availability of raw materials for production.

Zipse warned that the industry needs to be careful not to increase reliance on a few countries, citing the supply of raw materials and batteries is overly dependent on China, Reuters reported.

The CEO is prevalent for his strong stance against an all-out ban on combustion vehicles, and he might be right. Switching from combustion vehicles isn’t as simple as it seems on paper.

There’s a lot to consider for consumers, including their driving habits, residence, and the type of vehicle they are looking to get. Hybrid cars offer a better transition into going fully electric for the more informed consumer.

Zipse also felt that producing more fuel-efficient vehicles is a better proposition for profit and decreased emissions. He pointed out the main issues affecting the transition, including the cost of buying an EV and gaps in charging infrastructure.

According to Edmunds, the average retail price for an EV in the U.S. in February was $60,054 compared to the $45,596 average for all new vehicles (inclusive of fully electric variants).

BMW CEO added that auto manufacturers need to plan for high energy prices and raw materials by having efficiency in their production and turning up their recycling processes for cost reduction.
If you liked the article, please follow us:  Google News icon Google News Youtube Instagram

Editor's note: Images featured are for illustration purposes

About the author: Humphrey Bwayo
Humphrey Bwayo profile photo

Humphrey is a car enthusiast whose love and passion for automobiles extended into collecting, writing, driving, and working on cars. He got his passion for cars from his Dad, who spent thousands of hours working on his old junky 1970 E20 Toyota Corolla. Years later, he would end up doing the same with a series of lemons he’s owned throughout his adult life.
Full profile


Would you like AUTOEVOLUTION to send you notifications?

You will only receive our top stories