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Germany provides $ 1 $ 4 billion in incentives for electric cars.
Buyers receive up to 4,000 euros per vehicle to boost sales.
Merkel faces the opposition of planning within its bloc of governing.
The government of German Chancellor Angela Merkel has made an agreement with manufacturers to go together 1 2 billion euros1 4 billion on incentives to boost sales sluggish electric car.
Buyers will receive up to 4 000 rebate to help offset the higher price of an electric vehicle, Finance Minister Wolfgang Schaeuble said at a press conference in Berlin buyers of hybrid cars get up to 3 000 over the price the industry will assume 50 percent of the program cost is set to start in May, pending approval of the budget committee of the German parliament, he said.
The goal is to move as quickly as possible on electric vehicles, Schaeuble told reporters, adding that the goal is to start offering incentives the next month, we give a new impetus.
The automotive industry, the largest manufacturing sector in Germany by revenue, sees incentives as a potential game changer because of the size of the country market, representing nearly a quarter of all sales automobiles across Europe Merkel, who suggested in February that it was ready to support subsidies to reach its goal of 1 million electric cars on German streets by 2020, sealed the deal with CEOs automotive Tuesday after weeks of discussions on how to divide the funding initially offered the industry to pay 25 percent of the total.
This is an important incentive, and it is a good start, said Arndt Ellinghorst, a London-based analyst Evercore ISI But what needs to happen more importantly, German manufacturers should make attractive e-cars and just German e-cars are not .
Just over 30,000 electric vehicles, which are more expensive than conventional models have been sold in Germany That's a small fraction of the more than 3 million cars purchased each year in a country that has always focused on diesel technology to reduce emissions of carbon dioxide.
Automakers including Volkswagen AG Daimler AG and BMW AG as well as suppliers such as Continental AG directly employs 790,000 people in Germany last year, when industry sales amounted to 404 billion euros, according to statistics Ministry of output of transport in the country increased by 1 9 percent last year to 5 7 million cars, with models including Mercedes-Benz S-Class sedan from Daimler, made near Stuttgart, and Audi A3 sedan that Volkswagen division built in Ingolstadt.
Automaking is one of the key industries and lead it doesn t help if we leave completely alone in the world competition, the Vice Chancellor Sigmar Gabriel said at the Berlin event, comparing electric cars incentives to support European governments have given it a few years ago to help strengthen Airbus Group in the same time, leaders of the industry should move to a more proactive strategy to deal with the challenges and not always say that is impossible, he said.
Volkswagen increased by 2 7 percent to 45 128 euros from 1 to 20 p m commercially Frankfurt, while BMW won 0 5 percent to 83 04 euros Daimler decreased 7 percent 0 62 48 euros.
German car producers have support in other European countries in their efforts to influence the government of Merkel In France, the government began offering a 10,000 euro discount last year for commercial pilots in old diesel cars Norway owners of electric cars enjoy a plethora of benefits, including tax breaks, charge the battery free, free parking and exemption from congestion charges.
By throwing its support behind the program, Merkel walk a tightrope in its administration block While some - as the head of the Christian Social Union, the Bavarian sister party to the Christian Democratic Union-- favor incentives to boost sales and create jobs, many others have opposed these measures.
The project also includes 300 million euros in support of the German government within three years until 2020 to develop a network of 15,000 charging stations and batteries EUR 100 million for the authorities to buy electric vehicles.
The government has implemented appropriate measures to provide e-mobility a boost in Germany, the country needs to catch up if it is to become a leader in the e-car market, Matthias Wissmann, President of the 'German automobile manufacturers association, or VDA This is why the construction of a charging network throughout the country in step with an increase in sales is expected to occur quickly.
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