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Automotive industry criticizes sudden end to environmental bonus

Environmental bonus "very decisive"

Hildegard Müller, President of the German Association of the Automotive Industry (VDA)..aussiedlerbote.de
Hildegard Müller, President of the German Association of the Automotive Industry (VDA)..aussiedlerbote.de

Automotive industry criticizes sudden end to environmental bonus

The German Association of the Automotive Industry (VDA) has sharply criticized the sudden end of electric car subsidies in Germany.

The German government had made a promise to consumers that they would receive support when buying an electric car under certain conditions - to now deny people the environmental bonus undermines their trust in the reliability of politics, explained VDA President Hildegard Müller on Monday. For many of those affected, the environmental bonus is "absolutely crucial" due to the financially strained situation.

"The fact that the deadline for the subsidy was set for yesterday, Sunday, is disproportionate," criticized Müller. The VDA is "emphatically" calling on the Federal Government and the Bundestag to find a solution as quickly as possible that guarantees customers the bonus they had planned for when they bought their car.

The Federal Ministry of Economics had announced on Saturday that applications for the incentive bonus for e-cars could only be accepted until midnight on Sunday. The reason for this was budget cuts. In their agreement on the 2024 budget last week, the coalition leaders had decided to phase out the subsidy. However, the fact that the application freeze was to take effect on Sunday came as a surprise.

According to the AFP news agency, around 1,400 applications were recently received every day, with an average funding amount of 4,000 euros. Every additional day of applications costs the state around 5.6 million euros. If applications had been stopped at the end of the year, as had initially been expected, additional funds of around 80 million euros would have been required.

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The Automotive Industry Association (VDA) believes that the abrupt cessation of the environmental bonus for electric vehicles in Germany negatively affects consumer trust in political reliability, as many buyers rely heavily on this incentive due to their financial constraints. The VDA strongly advocates for the Federal Government and Bundestag to expeditiously find a solution to maintain the promised bonus, as the sudden cutoff from yesterday is seen as disproportionate.

Source: www.ntv.de

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