Christiane Benner, President of IG Metall: “The switch to electric cars must become possible for more people. The new electric car subsidy is an important step in the right direction. Individuals with low and moderate incomes will benefit from the subsidy, and it’s absolutely right that people with low incomes receive a higher subsidy! It’s also good that the subsidy applies retroactively to January 1. There’s no longer any reason to wait. It would also make sense to extend this to used cars soon.
The restriction to vehicles “Made in the EU” must now be reviewed as quickly as possible. Manufacturers who produce vehicles elsewhere—sometimes under poor labor and environmental standards—should not benefit from German taxpayer money. These subsidy funds must go to German factories and be converted into jobs!”
Further information and press photos of Christiane Benner
Detailed Assessment of the New Electric Car Incentive
The new electric car subsidy is an important step in the right direction. In addition to the existing subsidy programs for the company car market, private individuals with low and moderate incomes will now benefit, and those with lower incomes and families with children will receive higher subsidies. Leasing is subsidized in addition to purchasing. The social component is therefore clearly pronounced. This will give even more citizens access to electric mobility. The income thresholds are well chosen. People with low and moderate incomes will benefit from the subsidy, which could lead to a new surge in market penetration among private car buyers. It’s also good that the subsidy applies retroactively to January 1. There’s no longer any reason to wait.
We welcome the new subsidy; in many respects, it aligns with IG Metall’s proposals. It can become an important building block in supporting the German automotive industry and its workers during the current difficult situation.
However, we see room for improvement in some areas.
It is regrettable that used-car purchases are not eligible for the incentive at this time. Given the steeper decline in the residual value of electric cars, a (possibly lower) used-car incentive could help overcome hesitation even when purchasing new vehicles. It would enable even more people to drive electric vehicles, make good vehicles accessible at lower prices, strengthen acceptance, and reduce CO2 emissions. Expanding the program to include used cars in the near future would make sense.
In addition, the restriction to vehicles “Made in the EU” must be reviewed as soon as possible. Subsidies funded by German taxpayers’ money must also translate into increased demand at German manufacturing plants. The situation facing the industry and employment (manufacturers and suppliers) is highly precarious. The incentive must therefore also ensure better capacity utilization at German automotive sites. Based on current market shares, a substantial portion of the additional demand will go to European manufacturers, but this is not guaranteed. Manufacturers that produce elsewhere—sometimes under poor labor and environmental standards—must not benefit from German taxpayer funds.
Finally, it is essential that prices for charging electricity at public charging stations decrease. In its Master Plan for Charging Infrastructure, the federal government has announced important measures to ensure price transparency and greater competition at charging stations. These must now be implemented as quickly as possible.
