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Germany to give €1bn subsidy to boost electric car sales | Germany to give €1bn subsidy to boost electric car sales |
(4 months later) | |
Germany will subsidise electric car purchases to give a jolt to sluggish growth in the sector and help meet national climate goals with zero-emission mobility, the government said Wednesday. | Germany will subsidise electric car purchases to give a jolt to sluggish growth in the sector and help meet national climate goals with zero-emission mobility, the government said Wednesday. |
Car buyers will receive €4,000 ($4,500) when they choose a purely electric vehicle and €3,000 for a plug-in hybrid, with the cost shared 50-50 between the public purse and car makers. | Car buyers will receive €4,000 ($4,500) when they choose a purely electric vehicle and €3,000 for a plug-in hybrid, with the cost shared 50-50 between the public purse and car makers. |
The programme starting next month aims to help Germany approach its goal of putting one million electric cars on the road by 2020 – up from around 50,000 now out of Germany’s 45 million cars. | The programme starting next month aims to help Germany approach its goal of putting one million electric cars on the road by 2020 – up from around 50,000 now out of Germany’s 45 million cars. |
So far, German auto giants Volkswagen, Daimler and BMW have signed up to it, but the programme is open to all national and foreign brands. | So far, German auto giants Volkswagen, Daimler and BMW have signed up to it, but the programme is open to all national and foreign brands. |
The government has budgeted €600m for the purchase subsidies, which are expected to run until 2019 at the latest. | The government has budgeted €600m for the purchase subsidies, which are expected to run until 2019 at the latest. |
The money will be disbursed on a first come, first served basis for cars priced no higher than €60,000, said finance minister Wolfgang Schäuble. | The money will be disbursed on a first come, first served basis for cars priced no higher than €60,000, said finance minister Wolfgang Schäuble. |
“If you want one, buy it quickly,” he said at a Berlin press conference. | “If you want one, buy it quickly,” he said at a Berlin press conference. |
The government has also budgeted €300m to speed up building the infrastructure of electric car-charging stations in cities and on autobahn highway stops. | The government has also budgeted €300m to speed up building the infrastructure of electric car-charging stations in cities and on autobahn highway stops. |
Another €100m would go toward purchasing electric cars for federal government fleets. | Another €100m would go toward purchasing electric cars for federal government fleets. |
Overall, the €1bn government programme should subsidise 400,000 electric cars and boost the segment to the point where the e-car becomes “mass market capable”, said vice-chancellor and economy minister Sigmar Gabriel at the same press event. | Overall, the €1bn government programme should subsidise 400,000 electric cars and boost the segment to the point where the e-car becomes “mass market capable”, said vice-chancellor and economy minister Sigmar Gabriel at the same press event. |
Critics have asked why auto companies that already make billions in profits – and especially embattled VW, gripped by the global emissions cheating scandal – should benefit from public subsidies. | Critics have asked why auto companies that already make billions in profits – and especially embattled VW, gripped by the global emissions cheating scandal – should benefit from public subsidies. |
Gabriel said the programme, which follows similar schemes in Norway and the Netherlands, would also help future-proof Germany’s car sector in times of “the worldwide reinvention of individual mobility”. | Gabriel said the programme, which follows similar schemes in Norway and the Netherlands, would also help future-proof Germany’s car sector in times of “the worldwide reinvention of individual mobility”. |
German car makers are now marketing some 30 electric models, many of them plug-in hybrid versions that can switch between a conventional petrol engine and batteries. | German car makers are now marketing some 30 electric models, many of them plug-in hybrid versions that can switch between a conventional petrol engine and batteries. |
On the market are a BMW electric-only car, as well as Volkswagen’s E-Golf and E-Up, several Daimler B-class models and a version of the Smart. | On the market are a BMW electric-only car, as well as Volkswagen’s E-Golf and E-Up, several Daimler B-class models and a version of the Smart. |
Audi plans to release an electric SUV in 2018, while luxury car maker Porsche has promised a “Mission E”. | Audi plans to release an electric SUV in 2018, while luxury car maker Porsche has promised a “Mission E”. |
VW CEO Matthias Mueller said the new scheme was in the interest of motorists and the auto industry. | VW CEO Matthias Mueller said the new scheme was in the interest of motorists and the auto industry. |
“The future belongs to electro-mobility,” he said. “Together we are now laying the groundwork for this future to start more widely in Germany.” | “The future belongs to electro-mobility,” he said. “Together we are now laying the groundwork for this future to start more widely in Germany.” |
Germany, Europe’s biggest economy, under its ambitious “energy transition” plans to largely switch from climate-harming carbon fuels to clean energy by the middle of the century. | Germany, Europe’s biggest economy, under its ambitious “energy transition” plans to largely switch from climate-harming carbon fuels to clean energy by the middle of the century. |
It is phasing out nuclear power by 2022 and boosting wind, solar and other clean energy sources to meet 80 percent of its power needs by 2050. | It is phasing out nuclear power by 2022 and boosting wind, solar and other clean energy sources to meet 80 percent of its power needs by 2050. |
Renewables such as wind, solar, water and biomass last year accounted for one third of electricity consumed in Germany. | Renewables such as wind, solar, water and biomass last year accounted for one third of electricity consumed in Germany. |
However, the transport sector has been a laggard in Germany’s energy shift, with electric cars so far making up less than one percent of vehicles on German roads. | However, the transport sector has been a laggard in Germany’s energy shift, with electric cars so far making up less than one percent of vehicles on German roads. |
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