Germany’s Chancellor Calls for European Support to Boost Electric Vehicle Sales
German Chancellor Olaf Scholz has called for coordinated European action to incentivize the purchase of ELECTRIC vehicles in a bid to revitalize the nation’s struggling automotive sector.
His plea comes as campaigning kicks off for a snap election expected in February, prompted by the collapse of Scholz’s coalition government last month. While the election hasn’t been officially announced, Scholz has already outlined his platform, emphasizing his commitment to protecting jobs and supporting working-class citizens.
However, the backdrop against which the campaign is unfolding is far from optimistic. Germany’s economy has barely budged over the past two years, with economists predicting the stagnation to persist into the coming year. Further blighting the outlook, the nation’s powerhouse automotive industry finds itself in crisis, beset by soaring costs, waning demand, and intensifying competition from Chinese manufacturers.
In light of these challenges, Germany’s carmakers have emphasized the crucial need for renewed support to stimulate the transition to electric vehicles. The government’s prior financial program for EVs fell victim to budget constraints, contributing to the rift amongst Scholz’s coalition partners, ultimately causing the government to crumble.
Scholz made his call for a pan-European EV subsidy program during a visit to Ford’s Cologne factory, while engaging with Ford workers on social media. Piercing the gloom surrounding the job losses in the industry, Scholz expressed a belief that “what we believe is necessary in terms of support” must be provided to drive progress, insisting that the government must concentrate on keeping energy prices affordable and retaining tax breaks on company electric vehicles.
Furtheringitic Scholz. highlighted: “we want the whole of Europe to make an effort – We need sales support that works across Europe or approval from Europe to encourage production to promote sales in Germany,” Scholz advocated.
Adding weight to mounting concerns, Volkswagen, Europe’s leading carmaker, recently announced it was contemplating closing production sites within Germany for the first time in its history. Adding to the tension, at Ford’s Cologne factory, where Scholz personally addressed workers with a direct appeal for pan-European backing for electric cars, the company announced plans to shed 2,900 jobs in Germany by 2027.
