Germany unveils new incentive for electric cars
Germany to subsidize electric cars to help clean automotive industry.
The risks of automotive AP BERLIN Germany supplanted by foreign competitors, unless it receives more domestic support, the minister of the economy said on Wednesday plan announced a 1 billion EUR January 13 billion for subsidizing electric cars that are considered the technology of the future.
Electric vehicles have had a slow start in Germany, the country where the combustion engine powered car was born a government plan to get 1 million electric cars on the streets by 2020 is far behind, with only 50 000 sold to date.
After a long discussion we agreed to a subsidy program which aims to show the domestic market we can master these new drive trains, plug-in hybrid vehicles to battery-powered, and make them adapted to the market mass, Economy Minister Sigmar Gabriel said at a news conference in Berlin.
Starting in May, buyers will have 4,000 euros 4,514 80 with the purchase of an all-electric vehicle, while plug-in hybrids will receive a grant of up to 3,000 euros The cost will be shared equally by the Government and industry.
Finance Minister Wolfgang Schaeuble said he would reserve of € 600 million for rebates, which will be available on a first come, first served other will be used € 100 million for purchase of electric vehicles for own fleet government and 300 million euros will be invested in electric charging stations.
Gabriel said the aim was to increase the number of electric cars in Germany tenfold to 500 000 by 2020, yet only half of the original target.
While foreign automakers will benefit from the subsidy, too, if they agree to contribute their share of the refund, the only automakers that have signed so far are Volkswagen, Daimler and BMW Since German buyers tend to buy brands national, the country's automobile industry is likely to benefit most from the program.
The country will have a chance to preserve its social norms, ecological, cultural if it remains a successful industrial nation, Gabriel said, noting the success of the program to create a European aircraft manufacturer, Airbus, there decades.
Japanese automaker Toyota has been a commercial success with its plug-in hybrids for years, while Tesla in California, is considered the cutting edge of all-electric vehicles.
Now we are in the same situation, said Gabriel The reinvention of the automobile is being driven by companies that aren t based in Europe.
The move comes amid questions about the future of diesel engines, a technology popular among German manufacturers Volkswagen admitting last year he used special software to rig the emissions test for United States for its latest clean diesel vehicles has cast a shadow on the technology and its viability in a world increasingly environmentally conscious.
The German green transportation lobby VCD criticized incentives as blunt, saying they should instead give priority to the most energy-efficient cars and to be financed by higher taxes on gas guzzlers.
The unions, meanwhile, welcomed the government plan.
The market for electric vehicles to be kick if properly develop, said Michael Brecht, Chairman of Daimler employees calling sensitive incentives for industrial policy.
Germany to subsidize electric cars to help clean automotive industry, Germany, subsidize electric cars.