“It is good that Federal Minister of Economics Habeck met today with top representatives of the automotive industry to discuss the crisis situation.
From the employees’ perspective, the situation in Germany’s automotive industry could hardly be more dire. The future of the automotive industry is also a matter of vital importance for Germany as an industrial hub. The problems facing the automotive industry are being massively exacerbated by the overall difficult economic situation. That is why it is and remains crucial to provide consumers with financial planning security and to strengthen domestic demand.
IG Metall’s calls for an industrial policy that focuses on investment and affordable, predictable energy costs for energy-intensive industries are outlined across all sectors in our 11-point plan. We need security for workers through a strong industrial base in Germany, well-paid jobs, and stable democratic conditions. The repeal of takeover regulations and the decline in apprenticeship positions are creating uncertainty among the younger generation and exacerbating the shortage of skilled workers.
We have made it clear that conflicts between management and labor are currently occurring in many companies, and we consider the short-sighted, purely profit-driven actions of some management teams to be misguided and irresponsible.
We call on employers: Stop the frantic and knee-jerk cuts to staff and locations. We need investments in the future and in securing a skilled workforce—a long-term perspective rather than quick returns.
Let’s talk instead: dialogue instead of excuses.
However, we have also made it clear that we hold policymakers accountable to do significantly more to support the goals set by policymakers.
In light of the deepening crisis in the automotive industry, the sluggish ramp-up of electric mobility, the reluctance to invest in the electric mobility value chain, the time pressure in the international competition for the markets of the future, and the foreseeable failure to meet climate targets, IG Metall is now calling for a rapid new stimulus package for electric mobility.
Accelerating the ramp-up of e-mobility would benefit the climate as well as the manufacturers and suppliers who have invested billions in e-mobility. Investments must be worthwhile, and fines next year for failing to meet climate targets would be a disastrous waste of money.
Revitalizing the ramp-up would also make it easier for the industry to gain further ground in the race against non-European manufacturers. It would serve both as an economic stimulus package and as a shot in the arm for industrial policy, paving the way for a successful transformation of the automotive industry.
In addition to the special depreciation allowance for commercially purchased zero-emission vehicles that has already been approved, the federal government should also resume subsidies for the private purchase of electric vehicles and plug-in hybrids, launch a social leasing program, and consider a used-car incentive.”
OVERVIEW OF IG METALL’S DEMANDS:
1. Incentives for the purchase of fully electric vehicles and plug-in hybrids should be reintroduced for private buyers as well. They should be socially tiered and could be phased out gradually over the incentive period. As with the previous model, it can be granted in the form of a purchase incentive or as a deduction from income tax liability (similar to the deductibility of energy-efficient building measures under Section 35c of the Income Tax Act). If policymakers choose the tax deduction model, an additional measure for lower-income groups would need to be implemented.
2. A social leasing program should be established for low-income users. This program should focus primarily on people with low incomes, long commutes, and small business owners (such as home care services). This would give new segments of consumers access to electric mobility that was previously out of their reach.
3. Only vehicles with a significant share of European value added should be eligible for subsidies. However, all brands should be eligible, regardless of the manufacturer’s headquarters.
4. The used-car market for electric vehicles is crucial for broader market penetration. And the fear of a decline in the residual value of electric cars is currently a factor contributing to reluctance to buy. Therefore, subsidies for the purchase of used BEVs or PHEVs should be considered. This, too, would make electric cars affordable for a broader range of consumers. For new-car buyers, this would mitigate the residual value risk and reduce leasing payments on new vehicles.
5. To complement the special depreciation allowance for commercial vehicles, the deductibility of lease payments as business expenses for BEVs and PHEVs should be increased, as a large portion of commercial business is conducted through leasing.
In addition to promoting the purchase of zero-emission vehicles, the federal government should now take further action in these areas as well:
6. Reducing the cost of charging electricity, either by lowering taxes on electricity prices or by making charging costs tax-deductible.
7. Support for a prospective electric vehicle quota for corporate fleets and leasing providers, currently being developed by the European Commission.
8. Ambitious implementation of the supply obligation for large gas station operators.
9. Ambitious implementation of the EU Buildings Directive by the federal government, to increase the number of charging points in underground parking garages, at residential buildings, in the workplace, and at retail locations.
10. Ensuring funding for the development of an initial charging network for commercial vehicles and renewed purchase incentives for climate-friendly commercial vehicles.
11. Further support for battery research, a key technology for climate-friendly mobility.
12. Further support from the federal government for regional transformation networks from 2026 to 2028.
