June's AI-picked stock updates now live. See what's new in Tech Titans, up 28.5% year to date.Unlock Stocks

Carmakers foot German EV subsidy bill after state backs out

Published 19/12/2023, 09:04
© Reuters. FILE PHOTO: A Volkswagen logo is seen on a Volkswagen ID.5 electric car on display at a showroom of a car dealer in Reze near Nantes, France, November 13, 2023. REUTERS/Stephane Mahe/File Photo
VOWG_p
-

BERLIN (Reuters) -Audi, Mercedes-Benz, Stellantis and the Volkswagen (ETR:VOWG_p) brand say they will fund a subsidy for German electric vehicle (EV) buyers after the government this week abruptly dropped a state-funded scheme.

Still, the offers will end months before the state scheme, which was due to last until the end of 2024.

The economy ministry halted the seven-year scheme on Monday as part of 2024 budget it was forced to revise after a court ruling blew a 60 billion euro ($65.77 billion) hole in its plans.

The scheme had offered up to 6,750 euros funded by the state and carmaker depending on the value of the EV.

Volkswagen on Tuesday said it would fund the full subsidy of 6,750 euros for private customers in Germany who ordered an eligible vehicle from the all-electric ID. range before Dec 15.

Those registered between January 1 and March 31 will receive 4,500 euros, Volkswagen said, in line with a planned reduction in the subsidy scheme.

Volkswagen's Audi said it would also fund the full subsidy for cars ordered before December 16 and delivered by the end of the year.

Mercedes-Benz said it would do the same for orders delivered and registered between Dec 18-31, and would provide its own portion of the subsidy from January onwards.

Stellantis on Monday said it would fund the full subsidy until December 31 and thereafter a reduced subsidy for vehicles registered by February 29.

Chancellor Olaf Scholz's Social Democrats and opposition conservatives criticised the government's scrapping of the scheme, arguing it would hit German carmakers already struggling to bring down prices to match Chinese and U.S. competitors.

© Reuters. FILE PHOTO: Volkswagen ID.7, new large all-electric sedan, is seen at its world premier presentation, in Berlin, Germany, April 17, 2023. REUTERS/Fabrizio Bensch/File Photo

The ADAC automobile association said EVs in Germany were still too expensive to end the subsidy, noting only three models from major carmakers cost less than 30,000 euros.

($1 = 0.9122 euros)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.