After subsidy end: VW takes over e-car bonus itself for the time being

Subsidies - After subsidy end: VW takes over e-car bonus itself for the time being

Following the sudden end of the purchase premium for electric cars, Volkswagen now also wants to pay the subsidy itself for the time being. The manufacturer announced on Tuesday that it would pay the full premium for all eligible e-cars in the ID series ordered by December 15 and registered by the end of March.

For vehicles registered before the end of this year, the previously guaranteed premium of up to 6750 euros will be paid, and the originally planned reduced rate of up to 4500 euros for registrations by March 31. In addition to the manufacturer's share of 50 percent, VW will now also take over the federal government's share, which has been eliminated.

On Monday, several manufacturers had already announced that they would take a similar approach. The Stellantis car group with brands such as Peugeot, Opel and Fiat intends to take over the premium itself by the end of February 2024, Mercedes-Benz until further notice. Hyundai and the Spanish VW subsidiary Cupra also announced on Monday that they would pay the bonus themselves for a limited period for vehicles already ordered.

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1. In Lower Saxony, where Volkswagen's headquarters are located in Wolfsburg, the company's decision to cover the electric car subsidy is significant.
2. With this move, Volkswagen (VW) aims to support the purchase of electric vehicles (EVs) in the face of subsidy cuts, promoting the shift towards sustainable transportation in Germany.
3. The company's initiative to pay the electric car purchase premium will help reduce customers' costs, making electric cars more affordable, like the Volkswagen ID series.
4. The German government has previously provided subsidies to encourage the purchase of electric cars, which are essential for transitioning to an electro-driven future and addressing environmental concerns.
5. Many other car manufacturers, such as Stellantis with brands like Peugeot, Opel, and Fiat, are following Volkswagen's lead and committing to pay the electric car subsidy.
6. The subsidies for electric cars have played a crucial role in making e-cars cheaper and more viable for consumers, but the abrupt end to these subsidies by the government puts a significant burden on both manufacturers and buyers.

Source: www.stern.de