Berlin – The SPD faction has proposed a bonus of €6,000 for switching from a combustion engine vehicle to a new electric car. According to information from the magazine Stern, a document from the faction’s economic policymakers also suggests a bonus of €3,000 for transitioning to a used electric vehicle. The clear aim is to encourage drivers to move towards electric mobility.
Financial incentives for switching to electric vehicles: SPD introduces new bonus ahead of auto summit
“We are convinced that electric vehicles are the future,” the legislators wrote before a meeting between the federal government and representatives from the automotive industry in Berlin this Monday. Other proposals in the document include a government subsidy for electric vehicle leasing aimed at individuals with low or middle incomes, as well as funding for private charging stations, storage, and charging columns.
Sebastian Roloff, a Social Democratic economic policymaker, explained the initiative to Stern. “The automotive summit must send a clear signal that companies and politics will overcome the current valley together,” he stated. Federal Minister of Economics Robert Habeck (Greens) has convened an auto summit for Monday.
VW crisis overshadows situation in Germany: SPD seeks to assist auto industry
“VW and the automotive industry are the engine of Germany,” expressed SPD vice-faction leader Verena Hubertz. If the engine is sputtering, “we need to get it running again.” During the 2009 economic crisis, Germany previously incentivized car exchanges with a €2,500 environmental bonus for those scrapping their old cars and buying new ones, which many referred to as the “scrappage bonus.”
The job security plan that had been in place since 1994 has been terminated at VW. In early September, Volkswagen also announced it would tighten its savings plans due to challenging conditions and could no longer rule out layoffs and plant closures.
The CDU sees the situation differently: The opposition party referred to the SPD proposal as absurd. “The previous scrappage premium did nothing to boost auto demand except for a brief flash in the pan,” criticized CDU/CSU faction vice Ulrich Lange. “However, there was chaos in the processing and abuse.” In light of the emphasis on electric vehicles, Lange advocated for technology openness and called for financial relief measures and easing of European pollutant limit regulations for cars.
The Union’s plan: Relax pollution rules
Manfred Weber (CSU), chairman of the European People’s Party, also proposed a different direction. He suggested suspending the threatened penalties for auto manufacturers regarding the planned stricter fleet standards for CO2 emissions. “When tens of thousands of jobs are at stake, there’s no time for penalty payments,” Weber stated to the “Augsburger Allgemeine.”
The party vice also called for a review of all EU regulations affecting the automotive industry. “We need a complete revision of all laws and regulations for the automotive industry,” Weber said. “Otherwise, we won’t be able to make this crucial industry future-proof and secure jobs.”
Automotive industry fears billion-euro burdens
The automotive industry fears additional billion-euro burdens in light of the declining demand for electric vehicles. Recently, VW supervisory board chairman Hans Dieter Pötsch called for the relaxation of CO2 fleet targets. Environmentalists are opposed to this.
The EU aims to gradually tighten the so-called fleet targets for carbon dioxide (CO2) emissions. The current target of an average of 115.1 grams of CO2 emissions per kilometer and vehicle is set to reduce to 93.6 grams by 2025 and 49.5 grams by 2030. If manufacturers exceed the CO2 limits, they face fines. Recently, plug-in hybrids have become more popular.
