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Circles: Decide on car purchase incentives by early June

2020-05-05T10:15:24.641Z


The demand for cars collapsed in the Corona crisis. However, the manufacturers are gradually ramping up their plants. They are now asking for bonuses to sell their cars. But the federal government is dampening expectations.


The demand for cars collapsed in the Corona crisis. However, the manufacturers are gradually ramping up their plants. They are now asking for bonuses to sell their cars. But the federal government is dampening expectations.

Berlin (dpa) - The federal government wants to decide on the design of purchase incentives for cars by early June. The German press agency learned from government circles that the "Auto Summit" agreed.

In addition to the manufacturers and the VDA industry association, the "car countries" of Lower Saxony, Bavaria and Baden-Württemberg are also campaigning for purchase premiums. The demand for cars collapsed in the Corona crisis.

Finance Minister Olaf Scholz (SPD) had announced that the coalition would launch an economic stimulus package in late May or early June to boost economic activity.

Chancellor Angela Merkel (CDU) and several federal ministers attended a video conference in the morning on the state of the auto industry, as well as representatives of the major German manufacturers such as VW, Daimler and BMW, the car association VDA and IG Metall.

The auto industry was already going through a difficult transition before the crisis. The EU's stricter climate requirements are forcing it to use more alternative drives, in addition to digital change.

Lower Saxony, Bavaria and Baden-Württemberg see the federal government as a duty to support the auto industry with around 800,000 jobs. The country heads proposed specific bonuses on Monday. For modern gasoline and diesel cars from pollutant class 6d-Temp this should be 3000 euros. For plug-in hybrids, electric and hydrogen cars, there should be an additional 4000 euros - this would add to an existing premium.

In addition, customers who hand in an older car with the Euro 3 or Euro 4 standard should receive an additional 1000 Euro scrappage bonus. If you buy a modern combustion engine and later switch to an electric car, you should get another € 1,000 changeover premium. There was a scrapping premium for old cars in the financial and economic crisis more than ten years ago.

VW, Daimler, BMW, Audi, Ford and Opel start their plants in Europe again after weeks of standstill, but many employees stay on short-time work and demand is low. There is a lot of fear in the industry that the car manufacturers are producing "on dump" because there are too few buyers. Manufacturers therefore demand quick decisions about purchase premiums. Potential buyers are currently waiting to see when and whether there will be such incentives, according to the auto industry.

Greens faction deputy Oliver Krischer told the German press agency that the federal government had to make a clear decision at the car summit - so that customers knew what they were up to. "But there shouldn't be a lump-sum purchase premium across all segments. What is needed is intelligent support for electric vehicles and plug-in hybrids with a significantly greater range than today." Funding and delivery could be staggered so that companies and employees had planning security to ramp up production. "This transformation process should be flanked by a reduction in the diesel privilege and a modification of the vehicle tax."

The FDP transport politician Oliver Luksic told dpa that the corona crisis exacerbated the problems of the automotive industry and made it clear that the political framework conditions had to be adjusted. "Ever stricter fleet regulations and now even Corona are increasing the pressure on the German key industry. Structural reforms are better than subsidies, because at the same time national purchase premiums and European fines do not go together."

The industry expert Ellen Enkel from the University of Duisburg-Essen warned of a government funding program based on the watering can principle. The scrappage bonus in 2009 did not help customers to buy climate-friendly cars. New government support therefore needs a "climate component".

Grandson pleaded for a purchase premium of 6,000 euros in the form of tax relief, which compensates for the average surcharge for more environmentally friendly cars. The premium should also be extended to other forms of mobility. A tax relief of 1000 euros per year would give buses, trains, e-scooters and e-bikes a boost.

Source: merkur

All news articles on 2020-05-05

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