BEM warns of imbalance due to lack of funding calls

The Federal Association for eMobility (BEM) has addressed an open letter to Federal Minister of Transport Volker Wissing, State Secretary Daniela Kluckert and the department heads at the Federal Ministry of Transport, expressing concerns about the subsidy policies for light and heavy commercial vehicles. After a budget of 1.6 billion euros was announced last year for the promotion of the acquisition of climate-friendly commercial vehicles, only two of the six promised subsidy rounds have so far been announced by the Federal Office for Logistics and Mobility (BALM).

"The situation is precarious, as companies generally hold off on acting until the next subsidy call after such a government announcement. If they act beforehand, they lose their entitlement to subsidies due to the elimination of what is known as an early start of measures," writes the BEM board, describing the situation of the affected companies.

The market for electric trucks is still young, and the unit costs are accordingly high. With the government subsidy, companies could start series production, resulting in price advantages for customers. However, this effect is currently being compromised.

"Without subsidies, the corresponding e-trucks and electric commercial vehicles do not enter the market in sufficient quantities. Worse still, those who invest without a subsidy notice are certain to fall into the cost trap."

Frustration Over Tender Conditions

There was already frustration at the start of the subsidy over the tender conditions. While initially light and heavy commercial vehicles were equally approved, BALM later rejected the applications of several freight forwarders and vehicle operators for the use of fully electric logistics vehicles. The rejections were justified with too low mileage of the vehicles.

Companies Facing Economic Imbalance

Due to significant delays on the part of BALM, some companies are now facing economic imbalance. Since customers are left without subsidy confirmation, sales are slowed, leading to cuts in personnel and material. The BEM has therefore requested the quickest possible improvement of the subsidy conditions.

"We would like to encourage you to send more clarity into the market. We expressly urge you to support light and heavy electric commercial vehicles equally, without reference to mileage, but rather in relation to their operating hours," which particularly affects inner-city electric transport vehicles.

List of Questions

In addition to a list of questions requesting a response, the BEM board submitted a recommendation to promote electric commercial vehicles from the lightweight mobility classes. These companies are completely ignored by the federal government's previous subsidy logic, even though the vehicles operate low in emissions and reduced in noise. The letter concludes:

"Opening the subsidies to all vehicle classes would be a powerful signal towards the environment and towards jobs, tax revenues, and the middle class. Given the international scenarios in the USA and China, an innovative 'Made in Germany' should include all participants."

You can find the open letter from BEM to Federal Minister of Transport Volker Wissing, State Secretary Daniela Kluckert, and the department heads at the Federal Ministry of Transport in our attachment.

About BEM

The Federal Association for eMobility (BEM) is an association of companies, institutions, scientists, and users in the field of electromobility who are committed to converting mobility in Germany to electromobility based on renewable energies. The tasks of the BEM include active networking of economic actors for the development of sustainable and intermodal mobility solutions, improving the legal framework for the expansion of e-mobility, and ensuring more equal opportunities in the transition to low-emission drive concepts. The association was founded in 2009. It organizes 450 member companies that have an annual turnover of more than 100 billion euros and employ over 1 million people worldwide. In 19 working groups, more than 1,850 registered participants work on the entire spectrum of e-mobility.