Prime Minister Weil: Tax Rebate for E-Cars - "Doubts About E-Mobility are a Disservice"

The Lower Saxony state government is calling for new incentives to support the struggling automotive industry by encouraging the purchase of electric cars. Prime Minister Stephan Weil proposes a tax reduction directly at the time of purchase.

"This would have the advantage of being able to provide a direct purchasing incentive, but the reduced revenue in public budgets could be offset gradually over the following years," said the SPD politician in the state parliament in Hanover during a government statement on the situation with Volkswagen. Weil did not specify a magnitude for the tax reduction. 

The opposition from the CDU and AfD accused the government of a unilateral focus on e-mobility and called for a change of direction to lead the automotive industry out of the crisis. "This crisis, Mr. Prime Minister, is also your crisis," said CDU parliamentary leader Sebastian Lechner.

Weil: Doubts about e-mobility are a "disservice"

Prime Minister Weil described his tax relief proposal as one of several possible measures to boost the sales of e-cars again. He mentioned purchase premiums, scrappage premiums, and a reduction in VAT as further possibilities that are being discussed. 

For people with low incomes, complementary measures such as social leasing offers would need to be taken, Weil further stated: "I believe we must generally ensure that people with small budgets can also participate in state incentives for the switch." 

What does not help at all, however, are "constant doubts about the course towards CO2 reduction and electromobility." The industry has embarked on this course with billions in investments because the EU and the federal government made corresponding regulations under the responsibility of the Union. "To sow doubts in the midst of this transformation really does a disservice to the industry," said Weil.

VW should avoid site closures

With regard to Volkswagen, the SPD politician said the state government expects the company to avoid site closures as much as possible. "The levers available go far beyond the buzzwords of site closures and layoffs," Weil said. "Industrial structures that are given up once are lost forever, everyone involved must be aware of that. Therefore, the state has the clear expectation to achieve the common goals through other, more intelligent options."

Meanwhile, negotiations between Volkswagen and the IG Metall union over the in-house collective agreement have begun. After VW announced a stricter cost-cutting course and also did not rule out layoffs and plant closures, the employees' side is now demanding concrete statements on the planned job cuts. Weil said that the state is fighting for every job, and he hopes that all parties will have clarity by the end of November.

CDU: "We must understand that bans are ineffective"

CDU leader Lechner criticized, saying the government is sticking to electric mobility come hell or high water despite the crisis in the automotive industry. "If you do not correct yourselves now, you will ruin the automotive industry in Germany," said the opposition leader. "You must simply understand that bans are ineffective." Lechner said that instead, the German CO2 emissions trading could be adjusted to the EU's CO2 trading as a market-based instrument so that climate targets in transport could be achieved. 

AfD parliamentary group leader Klaus Wichmann said that new purchase incentives would not change the fact that the market for e-cars is already saturated. "Those who think an e-car is great and can afford one have already bought one. These people don't need a second e-car, and the others either don't want or can't afford an e-car," he said.