Industry sees trust squandered with the end of the e-car premium

Industry sees trust squandered with the end of the e-car premium

After the sudden end of the purchase premium for electric cars, customers are now left out in the cold. The industry is protesting and complaining about a loss of trust in politics. The sector is now expecting a slower increase in sales figures for electric cars. It was only on Saturday that the Federal Ministry of Economics announced that applications for the environmental bonus could only be submitted on the following Sunday. The abrupt end was justified in ministry circles by the fact that money had become scarce in the budget.

The background to this is the ruling of the Federal Constitutional Court on the federal debt brake. As part of their austerity program, the coalition leaders of the SPD, Greens and FDP agreed a few days ago to phase out state funding "in the near future". They initially left the end date open.

Abrupt end to e-car subsidies

Before the federal government had to adjust its budget planning, the plan was to grant a purchase premium of up to 4,500 euros for new cars until the end of the year. In addition, the manufacturers were to receive half of the bonus, i.e. up to 2250 euros. On January 1, 2024, the state bonus was to be reduced to 3000 euros and then expire at the end of 2024. Now all of this is no longer applicable.

What is particularly problematic is that the bonus is only paid if the vehicle has been registered. The conclusion of a purchase contract is not sufficient. However, there are often several weeks or even months between ordering and delivery.

The government has promised consumers that it will support them in purchasing an e-car under certain conditions, said Hildegard Müller, President of the German Association of the Automotive Industry (VDA). "To now deny these people this support because they want to continue to stick to the registration date instead of the purchase date of an e-car undermines consumer confidence in the reliability of politics."

Müller also criticized the fact that setting the deadline for Sunday (17.12.) was disproportionate. "We strongly urge the German 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."

Consumer advocates pointed out that ordering a vehicle is always legally binding. The Federal Association of Consumer Organizations (vzbv) stated that it would have to be examined on a case-by-case basis whether the contract contained other provisions that would allow the buyer to withdraw from the contract. This would be the case, for example, if the assumption of the federal share of the e-car subsidy was promised in writing.

Some dealers want to take over the bonus

Some car manufacturers are planning or considering taking over the state purchase premium for a transitional period. The Stellantis car group with the brands Peugeot, Opel, Fiat, Jeep and others wants to do this. The company has announced that it will guarantee the full premium of up to 6750 euros for electric vehicles that were eligible under the previous guidelines until the end of the year.

In addition, Stellantis intends to accept the originally planned reduced premium of up to 4500 euros for e-vehicles already ordered and registered by their owners by February 29, 2024. Korean manufacturer Hyundai is still guaranteeing its e-car customers who have signed a contract by December 17 the full environmental bonus from 2023.

Mercedes-Benz announced that for orders that are delivered and registered by the end of this year, it will pay the manufacturer's share as well as the government's share if the customer no longer receives it from the government. In addition, the Stuttgart-based car manufacturer intends to subsidize orders that will be delivered in the coming year as well as new orders from January 1 until further notice with the manufacturer's share originally planned for 2024.

Audi: traffic lights have broken their promise

The car manufacturer Audi criticized that the traffic lights had broken their promise to customers with the immediate end of the environmental bonus. Trust in the policy had been "deeply disappointed". Customers were now canceling e-vehicles they had already ordered. "In the upcoming budget negotiations, we expect a clear commitment to promoting electric mobility and a concession from politicians for affected customers," Audi announced.

Volkswagen spoke of a "deep loss of trust", but initially did not comment on possible higher discounts or goodwill arrangements. BMW expressed "understanding for the tense budgetary situation and the resulting decisions of the federal government. In the long term, new technologies must support themselves on the market."

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1. The abrupt end to the purchase premium for electric cars in Germany has led to discontent within the automotive industry, particularly in Munich.
2. The Federal Ministry of Economics announced that applications for the environmental bonus could only be submitted on Sunday, following the ruling of the Federal Constitutional Court and the coalition leaders' agreement to phase out state funding for electric cars.
3. Hildegard Müller, President of the German Association of the Automotive Industry (VDA), criticized the government's decision to deny consumers the previously promised support for electric car purchases.
4. In response to the abrupt end, some car manufacturers, such as Stellantis and Mercedes-Benz, have announced plans to take over the state purchase premium for a transitional period.
5. The end of the purchase premium for electric cars has also impacted political parties in Germany, with the FDP accusing the Federal Government of damaging the electric car market and the SPD stating their commitment to supporting the sector.
6. The sudden end of the environmental bonus has resulted in confusion for consumers, particularly those who ordered electric cars before the deadline but will not be able to register them until after the deadline.
7. Industry experts have warned that the end of the bonus may slow down the adoption of electric cars in Germany, a key market for electro-mobility.
8. The decision to end the purchase premium for electric cars has also sparked criticism from consumer advocates, who argue that customers have a legal right to the bonus if they have signed a contract for the vehicle before the deadline.
9. The severity of the situation, as well as the implications for electric car manufacturers and consumers in Germany, has raised questions about the government's commitment to promoting sustainable transportation and reducing carbon emissions.

Source: www.stern.de