The German automotive industry is in crisis, and urgent solutions are needed. A proposal ahead of the automotive summit is rekindling old discussions.
In Berlin, SPD politicians propose that individuals who scrap their combustion engine vehicles in favor of new electric cars should receive a bonus of €6,000. This information is derived from a document by the party’s economic policymakers, according to reports from the “stern” magazine. For switching to a used electric vehicle, a bonus of €3,000 is being suggested. “We are convinced that electric cars are the future,” the lawmakers stated ahead of a meeting between the federal government and representatives from the automotive industry this Monday in Berlin. The opposition Union labeled the proposal as absurd and expressed its intention to pursue alternative measures.
“The automotive summit must send a clear signal that companies and politics are jointly overcoming the current valley,” said Sebastian Roloff, an SPD economic politician, to “stern”. Additional proposals in their document include a government subsidy for electric car leasing for people with lower to middle incomes, as well as funding for private charging stations, batteries, and charging columns.
“Germany’s engine is stuttering”
Deputy party leader Verena Hubertz remarked, “VW and the automotive industry are the engine of Germany. If the engine is stuttering, we need to get it running again.” During the economic crisis of 2009, Germany previously promoted car exchanges with a bonus of €2,500 for those scrapping their old cars for new purchases. This was often referred to as the “cash for clunkers” program.
However, CDU/CSU deputy Ulrich Lange criticized, “The previous cash for clunkers program did not deliver beyond a brief flare-up in car demand.” He noted that it resulted in chaos during implementation and misuse. Given the emphasis on electric vehicles, Lange advocated for technological openness and called for financial relief and easing of European emission standards for cars.
Union: Relax emission rules
This perspective aligns with the stance of the Chairman of the European People’s Party, Manfred Weber. He seeks to suspend potential fines for automakers regarding the planned stricter fleet targets for CO2 emissions. “When tens of thousands of jobs are at stake, there is no time for penalty payments,” Weber told the “Augsburger Allgemeine” newspaper.
Weber, the leader of the largest faction in the European Parliament and a CSU vice, also demanded a review of all EU regulations for the automotive industry. “We need a general revision of all laws and regulations for the auto industry,” he said. “Otherwise, we won’t succeed in making this vital industry future-proof and securing jobs.”
Reducing CO2 emissions
The EU intends to progressively tighten the so-called fleet targets for the emission of climate-damaging carbon dioxide (CO2). The current figure of an average CO2 emission of 115.1 grams per kilometer per vehicle is set to decrease to 93.6 grams by 2025 and to 49.5 grams by 2030. Manufacturers face penalties if they exceed the CO2 emissions thresholds.
The automotive industry is fearful of additional billion-dollar burdens amid declining demand for electric vehicles. Recently, VW Supervisory Board Chairman Hans Dieter Pötsch called for the relaxation of CO2 fleet targets. Environmentalists, however, oppose such measures. dpa
