German Chancellor Olaf Scholz called on Tuesday for a European plan to subsidize electric vehicles, as the country’s leading car industry faces a rapid transition to battery-powered vehicles.
“We need an incentive to buy electric cars — as a European bonus or as a direct support for electric cars made in Germany,” Scholz said on social media after visiting Ford’s American factory in Cologne.
Scholz made the call as the campaign continues ahead of an expected snap election in February, which was held after the government collapsed last month.
The election has not yet been officially called but Scholz has put the reins in place, committed to protecting jobs and supporting working people if they are reinstated.
But the context of this campaign is not good for the chancellor. The German economy has not grown well in the past two years and the stagnation is widely predicted to continue into next year.
The outlook is particularly sad for German automakers, which have struggled with high costs, weak demand and growing competition from China.
The new subsidy to buy electric cars has been a key question for manufacturers, who have seen car sales deteriorate after the government ended the subsidy program at the end of last year.
The financing plan for EVs fell victim to a budget deficit that would eventually narrow the gap between Scholz’s coalition partners and topple the government.
The crisis in the auto industry has led to a series of job cuts in the key sector.
Volkswagen, Europe’s largest car company, recently said it is considering closing sites in Germany for the first time in its history.
And at Ford, where Scholz spoke on Tuesday, the group said it plans to cut 2,900 jobs in Germany by 2027.
After companies have invested billions in the transition to electric vehicles, the government needs to do “what we believe is necessary in terms of support” to continue progress, Scholz told factory workers.
This means keeping electricity prices low and maintaining tax benefits for electric company cars, Scholz said.
“We want the whole of Europe to make an effort,” said Scholz.
“We need sales support that works across Europe or approval from Europe to promote production to promote sales in Germany.”
beach/sr/rl
Source link
