Skip to main content
Sister Publication Links
  • Automotive News
  • Automobilwoche
  • Automotive News Canada
  • Automotive News China
Subscribe
  • Subscribe
  • Newsletters
  • Login
  • HOME
    • Latest news
    • Automakers
    • Suppliers
    • New Product
    • Environment/Emissions
    • Sales By Market
    • On The Move
    • Auto Shows
    • Geneva Auto Show
    • Munich Auto Show
    • Paris Auto Show
    • Beijing Auto Show
    • Shanghai Auto Show
  • Features
    • Long Read
    • Interview of the Month
    • Focus on Electrification
    • Focus on Technology
    • Segment Analysis
    • Cars & Concepts
    • Supplier Spotlight
    • Europe By The Numbers
  • Opinion
    • Blogs
    • Commentary
    • Guest columnists
  • Photos
    • Photo Galleries
    • Geneva Photo Gallery
    • Beijing Photo Gallery
    • Frankfurt Photo Gallery
    • Paris Photo Gallery
    • Shanghai Photo Gallery
  • Europe By The Numbers
  • Car Cutaways
  • Resource Center
  • EVENTS
    • ANE Congress
    • ANE Rising Stars
    • ANE Eurostars
  • More
    • Publishing Partners
    • Social Media
    • Contact Us
    • Media Kit
    • About Us
    • Capgemini: All or nothing: Why circular business models require a holistic approach
    • Capgemini: Invent Head on automotive takeaways from CES 2023
    • Capgemini: Securing the industry's future through a radical rethink
    • Capgemini: Succeeding with the automated driving journey through AI
    • Capgemini: The circular economy is spurring new thinking on EV batteries
    • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
    • HEXAGON: Plugging into data is the only way to make winning EVs
    • PUBLICIS SAPIENT: The power of post-purchase: How automakers can maximize customer lifetime value
    • TOYOTA EUROPE: Toyota Motor Europe's next-gen C-HR: sensory innovations revealed by Vehicle UX leader
    • TUV Rheinland: Ideas, services and certifications for smart mobility
    • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
    • Toyota Europe
    • UFI Filters
    • Capgemini and Renault Group: Leaders on unlocking automotive sustainability with circular economy strategies and EV battery solutions
    • Clear Channel: The automotive industry is getting EV advertising wrong
    • SENSEAUTO: Driving the future of mobility with SenseAuto: The AGI power behind the wheel
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter
MENU
Breadcrumb
  1. Home
  2. CES
January 11, 2023 09:51 AM

BMW CEO says market demand, not politics, will guide U.S. EV investment

Oliver Zipse wants U.S. EV tax credit eligibility rules to be reconsidered.

Urvaksh Karkaria
  • Tweet
  • Share
  • Share
  • Email
  • More
    BMW Zipse

    Zipse has expressed frustration with the Inflation Reduction Act that ties EV tax credits to North American production and sourcing of key parts and raw materials.

    BMW Group CEO Oliver Zipse said the automaker will do what makes business sense and not be forced off-course by political agendas.

    BMW is under pressure to rethink its supply lines and production footprint concerning EV parts and batteries to qualify for a new tax credit meant to promote North American production.

    Zipse said that market demand, not politics, will guide BMW's future investment in the U.S.

    "We would not change in a substantial manner our strategy because of current politics," he said at a media briefing at CES 2023. "Our cars have a life cycle of maybe seven years, sometimes even longer. That's roughly two or three administrations."

    Zipse illustrated the perils of reacting to political winds during the Trump administration.

    “We discussed with the previous administration … and they would try to force us into the implementation of a combustion engine plant in the United States, which we don't have today," Zipse said.

    Had BMW gone along, he said, it would have been misguided, given the industry's pivot away from fossil fuels.

    "For God's sake, we didn't do that," Zipse exclaimed. "We have our own mind, and sometimes you must follow your strategy."

    ‘Level playing field'

    Like some foreign automaker bosses, Zipse expressed frustration with the Inflation Reduction Act that ties EV tax credits to North American production and sourcing of key parts and raw materials.

    He believes the law tips the advantage to U.S. automakers with more expansive domestic production and supplier networks.

    "We would ask for a level playing field as long as you are serving an American customer," Zipse said. "Europe does not make any differentiation where the car comes from. You get an incentive or tax break if you sell a car in Europe."

    In some ways, he said, BMW is already as American as apple pie.

    The luxury automaker operates an assembly plant in Spartanburg, South Carolina — its largest in the world — which employs more than 11,000 people. The 7 million-square-foot production hub stamped out more than 416,000 crossovers last year, with about 40 percent of them exported to world markets.

    "For the past eight years, we have been the largest exporter in value from the United States to the rest of the world — more than any American manufacturer does," Zipse said. "We are an American producer 100 percent."

    BMW is now plowing $1.7 billion into building a new generation of electric vehicles in South Carolina. Production of BMW's Neue Klasse platform EVs will begin there mid-decade along with battery pack assembly.

    "If we put that big investment into the country and we would not be part of the IRA umbrella, that would be a disappointment," Zipse said. "When a level playing field is disturbed or at risk, then it becomes for politicians a dangerous thing because there is always a backlash."

    RECOMMENDED FOR YOU
    Bosch fuses assisted driving and entertainment on one chip
    Recommended for You
    Bosch software defined vehicle
    Bosch fuses assisted driving and entertainment on one chip
    CES 2023 Rtrs
    Stellantis pulls out of CES tech expo, citing UAW strike, cost savings
    Clear channel image
    Sponsored Content: The automotive industry is getting EV advertising wrong
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get Free Newsletters

    Sign up and get the best of Automotive News Europe delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    SUBSCRIBE TODAY

    Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.

    SUBSCRIBE NOW
    Connect with Us
    • Twitter
    • Facebook
    • LinkedIn
    • Instagram

    Founded in 1996, Automotive News Europe is the preferred information source for decision-makers and opinion leaders operating in Europe.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI  48207-2997
    Tel: +1 877-812-1584

    Email Us

    ISSN 2643-6590 (print)
    ISSN 2643-6604 (online)

     

    Resources
    • About us
    • Contact Us
    • Advertise with us
    • Advertise with Us
    • Ad Choices
    • Sitemap
    Awards
    • Rising Stars
    • Eurostars
    • Leading Women
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News Europe
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • HOME
      • Latest news
      • Automakers
      • Suppliers
      • New Product
      • Environment/Emissions
      • Sales By Market
      • On The Move
      • Auto Shows
        • Geneva Auto Show
        • Munich Auto Show
        • Paris Auto Show
        • Beijing Auto Show
        • Shanghai Auto Show
    • Features
      • Long Read
      • Interview of the Month
      • Focus on Electrification
      • Focus on Technology
      • Segment Analysis
      • Cars & Concepts
      • Supplier Spotlight
      • Europe By The Numbers
    • Opinion
      • Blogs
      • Commentary
      • Guest columnists
    • Photos
      • Photo Galleries
      • Geneva Photo Gallery
      • Beijing Photo Gallery
      • Frankfurt Photo Gallery
      • Paris Photo Gallery
      • Shanghai Photo Gallery
    • Europe By The Numbers
    • Car Cutaways
    • Resource Center
    • EVENTS
      • ANE Congress
      • ANE Rising Stars
      • ANE Eurostars
    • More
      • Publishing Partners
        • Capgemini: All or nothing: Why circular business models require a holistic approach
        • Capgemini: Invent Head on automotive takeaways from CES 2023
        • Capgemini: Securing the industry's future through a radical rethink
        • Capgemini: Succeeding with the automated driving journey through AI
        • Capgemini: The circular economy is spurring new thinking on EV batteries
        • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
        • HEXAGON: Plugging into data is the only way to make winning EVs
        • PUBLICIS SAPIENT: The power of post-purchase: How automakers can maximize customer lifetime value
        • TOYOTA EUROPE: Toyota Motor Europe's next-gen C-HR: sensory innovations revealed by Vehicle UX leader
        • TUV Rheinland: Ideas, services and certifications for smart mobility
        • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
        • Toyota Europe
        • UFI Filters
        • Capgemini and Renault Group: Leaders on unlocking automotive sustainability with circular economy strategies and EV battery solutions
        • Clear Channel: The automotive industry is getting EV advertising wrong
        • SENSEAUTO: Driving the future of mobility with SenseAuto: The AGI power behind the wheel
      • Social Media
        • Facebook
        • Instagram
        • LinkedIn
        • Twitter
      • Contact Us
      • Media Kit
      • About Us