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Corona crisis: Economic practices reject car premium - and have another suggestion


The auto industry is in crisis because of Corona - and is quickly demanding clarity as to whether there are purchase bonuses. But there is headwind. All news in the ticker.

The auto industry is in crisis because of Corona - and is quickly demanding clarity as to whether there are purchase bonuses. But there is headwind. All news in the ticker.

  • The auto industry is also suffering from the corona crisis *. 
  • The heads of government of the car countries want to advise on possible state aid *
  • Some suggestions from the automotive industry in the economic crisis * go very far.

Update of May 22 : The five  economic modes reject the purchase premium for cars currently under discussion  . The

The government of Germany must not give in to pressure from individual sectors, the experts from the Council of Experts write in an article for the Süddeutsche Zeitung  (Friday edition) on the assessment of the overall economic development 

Such projects would solidify the structures that tend to exist without having a resounding economic impact, they explain. In order to boost the German economy in the Corona crisis again, the experts are instead opting for an energy price reform and stronger digitalization

Corona crisis: slump in sales - VW shuts down production again

Update from May 20: Volkswagen hits the headlines because of a commercial that is widespread on the Internet. The group faces racism allegations.

VW plans to restart production at its US plant in Tennessee

Update from May 14: Volkswagen plans to restart production at its US plant in Tennessee in a few days because of the corona crisis. From May 17, vehicle manufacturing should gradually resume, the German car giant announced on Wednesday.

At the end of April, VW had dropped the plan to restart the plant on May 3. The carmaker stopped the tapes because of the pandemic on March 21. The Chattanooga plant employs a total of around 3800 people.

The safety precautions now include temperature checks on everyone entering the factory, VW said. Nobody with a temperature above 38 degrees is allowed in. Every day there should be a new protective mask for every employee. Gloves are also available for everyone, but do not have to be worn. Doors should remain open so that you don't have to touch them.

VW has to shut down work again - sales slump through Corona

Update from May 12, 7:49 p.m .:  The slump in sales in the auto industry due to the Corona crisis is forcing Volkswagen to shut down work in places after the recent restart . At the main plant in Wolfsburg, the production of the small SUV Tiguan as well as the Touran and the Seat Tarraco will soon be completely stopped over four days . This applies on Friday (May 15th) and on May 20th, 25th and 29th, it said on Tuesday from corporate circles. The new Golf 8 is also affected, but here only individual shifts will be omitted on the days mentioned. In addition, the possibility of short-time work is to be extended to the period from May 18 to 31.

Some of the approximately 80,000 employees for whom reduced working hours had been registered in Germany have not yet returned. At the end of April, Volkswagen had started in Zwickau, then at its Wolfsburg headquarters and at several other locations, with a careful restart in production. However, customers across the industry continue to be cautious. For a long time, besides production, the car dealerships were tight - now the stores are full, while many consumers shy away from larger expenses. There were also significant supply chain problems.

Corona crisis: buying premiums for cars? Decision postponed

Update from May 12, 4:05 p.m .: The car industry wants a purchase bonus in the Corona crisis  - and is therefore met with rejection in the economic wing of the  Union's parliamentary group . "We demand cross-sector bureaucratization and support and accept specific solutions only for companies that continue to be affected by government regulations," said the dpa , Christian von Stetten (CDU), chairman of the influential parliamentary group for small and  medium- sized companies . "We reject an additional billion-dollar scrappage or purchase premium for the automotive industry." The Augsburger Allgemeine first  reported on the position  .

Stetten said the federal government should not wait until the beginning of June - but should already report this to the automotive industry. Delaying the decision would only lead to further reluctance to buy on the part of customers who "are now waiting to see whether they can take home a bonus of EUR 4,000". After a “car summit” last week, the federal government had made it clear that a decision should be made on possible purchase incentives by this date (see initial notification below) .

Debate over car purchase premiums in the Corona crisis: Kretschmann gets headwind from its own party

Update from May 5, 2:50 p.m .: The auto industry summit with Angela Merkel (CSU) brought no decision . Instead, the participants in the conference call want to exchange ideas about "measures to stimulate the economy" in a working group. In addition to Merkel, the finance ministers Olaf Scholz (SPD) , economics minister Peter Altmaier (CDU) , transport minister Andreas Scheuer (CSU) , environment minister Svenja Schulze (SPD) and chancellor minister Helge Braun (CDU) had spoken to representatives of the automotive industry. The results will be discussed in early June.

One thing seems to be clear: the measures should apply to the "modernization contribution towards innovative vehicle technologies ". Further state aid is still highly controversial. An ARD commentator meanwhile holds a blazing appeal for the Chancellor and pleads for a massive rethink in society after Corona.

Corona crisis: buying incentives are highly controversial within the party

Update from May 5, 2:05 p.m .: In the debate about incentives to buy  new cars, the Greens in the Bundestag oppose Winfried Kretschmann (Greens), Prime Minister of Baden-Württemberg  . "I have a different opinion," said parliamentary leader Katrin Göring-Eckardt in Berlin when asked whether she understood the position of the head of government in the southwest. 

Kretschmann, together with his counterparts Stephan Weil (Lower Saxony / SPD) and Markus Söder (Bavaria / CSU) , demanded, among other things, 3000 euros for modern gasoline and diesel cars with pollutant class 6d-Temp.


Greens group leader Katrin Göring-Eckardt

© dpa / Michael Kappeler

Corona crisis: State aid for VW, Daimler and Co.?

10:24 am: The carmakers are not just hoping for political help - they are  also putting pressure on them in the midst of the  Corona crisis . Before the Prime Ministers of Lower Saxony, Bavaria and Baden-Württemberg discussed the possible car purchase premiums in the Corona crisis, Volkswagen has called for extensive funding. They will campaign for "that politicians provide money for this impulse," said the boss of the works council, Bernd Osterloh, in a letter to the employees on Wednesday. In an interview, the VDA also requests massive financial aid in the form of a purchase bonus.

The heads of government of the three car countries - Stephan Weil (SPD), Markus Söder (CSU) and Winfried Kretschmann (Greens) - originally wanted to get together in the afternoon. Due to an appointment collision, they postponed their conversation again, it should be made up at a time not yet mentioned.

Meanwhile, it became known that BMW expects losses in the Corona crisis and wants to cut jobs. Federal Finance Minister Olaf Scholz (SPD) insists on higher taxes for the rich because of the Corona crisis.

Corona crisis: State aid for VW, Daimler and Co.? Advice to country heads

Original article from April 29, 2020:

Wolfsburg / Stuttgart / Munich - Should the powerful car industry , which is currently being slowed down by the  corona virus *, receive state aid? The heads of government of the three car countries of Lower Saxony, Bavaria and Baden-Württemberg - Stephan Weil (SPD), Markus Söder (CSU) and Winfried Kretschmann (Greens) - want to join forces on Wednesday to answer the question.

Coronavirus meets VW, Damiler and Co .: Osterloh with far-reaching demands

In advance, Volkswagen (VW) has spoken out in favor of far-reaching funding. They would campaign for "that politicians provide money for this impulse," said VW works council chief Bernd Osterloh  in a letter to the employees. 

"We know that we are using it to call for tax revenue," it says in the letter that dpa has. "But we also know that this money could be invested wisely for our entire society and could therefore pay off multiple times - namely economically, ecologically and socially."


Employees at the VW plant in Wolfsburg

© dpa / Swen gatekeeper

Corona crisis hits carmaker: VW wants "impulse bonus"

According to the ideas of the VW works council, a funding model should include, among other things, an “impulse premium” for new car purchases including leasing, which also applies to modern combustion engines and runs over a “clearly limited period”. It should be as high as the “scrappage bonus” in the financial crisis in 2009 and should also cover young used cars up to the age of one year.

VW demands "additional scrappage bonus" in corona crisis

Osterloh also wants an “additional scrappage bonus on top”, which is available for scrapped end-of-life vehicles that comply with the Euro 3 and Euro 4 emissions standards. In the opinion of VW, the German manufacturers should agree that the government funds "depending on the amount promised, may even double, or at least assume the switching costs". In addition, CO2 emissions should be taken into account more as a basis for assessing vehicle tax.

Premium model for car manufacturers in the corona crisis?

At the restart of the VW main plant in Wolfsburg *, Weil had announced that he would consider a conceivable bonus model : "We are aware that we need a quick decision." 

VW CEO Herbert Diess called for "early, powerful measures". Söder told the Süddeutsche Zeitung : "I am in favor of a very comprehensive strategy on how we can help the automotive industry."

The car manufacturers had to close their factories for several weeks due to the corona-related drop in demand and interrupted supply chains - drastic sales declines are the result. Federal Environment Minister Svenja Schulze (SPD) advocates new aid for the auto industry if the funding focuses on climate-friendly vehicles.

dpa / frs

VW has massive problems with a golf model and other brands. The corona crisis tears the biggest tax hole in the history of the Federal Republic. Limits of infection numbers, easing and demos: The corona crisis determines the discourse in Germany. Angela Merkel consults with the Corona cabinet on May 11 - and makes a statement. Due to the corona crisis, the department store chain Galeria Karstadt Kaufhof now wants to draw drastic consequences. Bavaria is tightening its upper limit for new coronavirus infections.

According to a German study, the corona virus damages other organs in addition to the lungs.

For a large chain of running shoes the end comes - that is harshly criticized by a CDU politician.

* is part of the nationwide Ippen-Digital editors network.

List of rubric lists: © dpa / Hendrik Schmidt

Source: merkur

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