Category: Car manufacturers strategy

Mr. Philippe Dehennin pleaded passionately for a change in EU Commission decarbonization policies in the interest or European car industry, its workers and its consumers…

Recently I assisted at an interesting luncheon conference held by Philippe Dehennin, Chairman of BEHVA and honorary Chairman of Febiac after a lifelong career at BMW, at the premises of Autoworld and organised by the dynamic Royal Historical Vehicle Club. 

He talked about the one-sided approach of the present EU commission and parliament in drafting the path to carbon neutrality of our automotive mobility.

He passionately pleaded for a neutral stance by the EU political decision makers concerning the technologies which are to be used in reducing carbon emissions. This is in the interest of both consumers and the European automotive industry, which is under pressure and economical risk due to one sided technological solutions (i.e BEV) which distort competitive balances in the global economy. Here I present to you an extensive report of his conference.

On the subject mentioned in our title, we will regularly report on what the captains of automotive industry have to say, and the adjustments they bring to their corporate strategies in these turbulent times of energy transition… Just read further!

Hans Knol ten Bensel   

The lunchean conference was held at Brussels Autoworld…and organised by the Royal Historical Vehicle Club.

After illustrating the broad evolution of our (Belgian and European) mobility from the early fifties to the present day, Mr. Dehennin described, amongst others, the positions of ecologists on our future mobility.

In terms of preference, these ecologists adhere to the following pecking order: walking, biking, metro, bus, and finally the individual car. They see further carpooling and car sharing as the only viable use for cars. They see the latter solution also ideal for bikes, like cargo- or tandem bikes for example.

However, all studies show clearly that in all everyday life situations, the car remains the preferred means of transport. This situation is somewhat less outspoken in cities, but the preference is even more outspoken on the countryside and suburbs. For many families and households, the car remains an outright necessity.

In terms of reducing the ecological footprint, car manufacturers have made a quite remarkable progress over the years and have convinced many car owners and users not to give up what they have acquired in terms of individual mobility. The car will have a bright future ahead, unless the EU commission maintains its stance to forbid the sale of cars with IC engines from 2035 onwards.

The private car buyer hesitates…

Do we have to fear that this will happen? Studies on the behavior of average, modest households, which represent the majority of our consumer base, clearly show  that they are largely opposed to the electrification of their cars. This situation now starts to have an impact on our politicians.

In the EU, only 1 in 10 of private car buyers opt for an electric vehicle. In Belgium, this is only one household on 20. The EV’s are just too expensive for the majority of average households. Many would just be forced to postpone the purchase of a new car and face the consequences of driving around illegally in (urban) low emission zones. Cities are aware of this and are starting to mitigate and loosen their emission regulations.  

But the trend is changing. There are also several countries who do not forbid anymore the sale of IC engine cars within their borders. The same goes for the use of heat pumps, etc. EU countries are now more than ever on the issue of decarbonization.

No place for climate skepticism…

I want to stress here that I am not a climate skeptic. I am convinced that reducing carbon emissions is an absolute necessity, but it has to be done with the support of the larger public, within the boundaries and limitations of their purchasing power. Now, EU and national politicians are increasingly becoming aware of this.

The actual and invasive consequences of the socially utopian obligations and regulations are seen and felt by the EU public, and one can indeed ask oneself whether these measures are deemed necessary, taking into account that Europe represents merely 8 pct. of global CO2 emissions. Since 1990, these EU emissions have dropped by 50 %, whereas the emissions of China and India have increased over the same period by 300 %.  

Saving the European car industry… through adopting a wider array of technologies.

Of course, the BEV is useful for many applications, notably in cities. But I also believe in the future of “thermal” or IC engine cars. 8 European countries, housing the majority of the not less than 13 million jobs tied to the automotive industry, have not said their last word. Nobody wants to open a free road to chinese imports. Germany obtained formal guarantees to be able to develop and use synthetic fuel for IC engines from 2026 onwards.

Jean Dominique Sénard, Chairman of the Board of Directors of the Renault Group, has repeated the strategy of Renault to go further on the path of electrification, but he thinks also that the combustion engine has still many good years ahead of it, thanks to the use of synthetic fuels, which he expects to go down in price in the coming years.

Oliver Zipse, chairman of the board of management of BMW AG, sees also hydrogen having a place in a diversified energy strategy to meet the varied needs of users the world over. In his latest statement, Zipse said “There is no “one size fits all” when it comes to mobility. Markets, customer wishes and conditions develop differently. This is a fact. As a global company, we take this into account. We are continuing to develop all powertrain technologies, including further researching the potential of hydrogen with our BMW iX5 Hydrogen pilot fleet.” (Added by editor).

Of course, hydrogen offers freedom of mobility with very short recharging times. BMW also believes in the future of thermal engines. Because the IC engine will live on for at least a century…And indeed, thermal engines are a crucial sector of European engineering excellence, whereas battery technology is a sector of Chinese engineering prowess.  

If we are driven by the political authorities in only one direction, i.e. BEV, without certainty of the geopolitical developments, nor the certainty of access to the necessary raw materials, without having the necessary “green” E-power and the corresponding adequate charging infrastructure, we will not be able to offer what the customer wants, nor will we be able to guarantee employment in the automotive sector.

A brief for the new EU commission: to adopt a neutral technological stance…

We need to convince the EU Commission to adopt a neutral stance on the technological level. The commission cannot dictate to the industry the technological path to follow. This has never been done in the past and should not be done now.

The CO2 neutral mobility has to be adapted to the diversified realities of the broad consumer base. Also the Diesel engine has not told its last word with the appearance of “clean” synthetic fuels on the market..

The new commission has to steer our European industry in an intelligent manner through this energy transition. If we need EV’s for our needs, we should also invite Chinese manufacturers to open  factories also on our shores; because only employment will generate the necessary prosperity and purchasing power.

Of course, the challenge for our manufacturers lies in offering also models for the average consumer besides the premium segment, where our European presence is already well established.

Only a combination of technologies will offer the proper solutions to the very diverse mobility needs of the EU consumer. The consumer should have the necessary freedom of choice, the liberty of selecting the ideal technology for his purposes.

Europe is a continent of liberties, the result of the declaration of human and citizen’s rights, like the freedom of speech, thought, opinion, property, the freedom to move when and how he or she wishes.

It is difficult to understand the complacency of a part of public opinion for those who seek to constrain us towards a single solution, i.e. the BEV and the bycicle. We need a technologically neutral, ecologically responsable mobility, respecting and preserving our economical prosperity. This will allow us to co-finance, together with the major powers, the decarbonization of the African continent.   

Europe has to be again the home of automobiles with passion and style…

One last word about design. It is time that the European car industry starts to offer intense and passionate automobiles, incarnating a (design) culture proper to each brand. This trend is now (thankfully) growing… concluded the speaker.

Hans Knol ten Bensel