Ahead of the automotive summit led by Robert Habeck, a myriad of proposals aim to rejuvenate the electric vehicle (EV) market. These include a 2.0 scrapping bonus, state subsidies for electric car leasing, and support for private charging infrastructure. Critics, however, caution against potential chaos and abuse reminiscent of previous incentives. They advocate for technology neutrality, financial relief, eased EU emission limits, and special depreciation for zero-emission commercial vehicles. Prominent figures like Manfred Weber and Christoph Ploß have also weighed in, with organizations like IG Metall, the German Economic Institute, and Greenpeace presenting additional suggestions. Marcel Fratzscher of DIW attributes the industry's crisis to companies' own missteps, notably the diesel scandal and over-reliance on China.
The EU's stringent CO2 fleet limits, set to tighten further from 2025, pose a significant challenge. These regulations demand drastic reductions in average CO2 emissions per kilometer, with severe penalties for non-compliance. Despite initial optimism and substantial investments in electric mobility, German automakers now face declining BEV sales and potential billion-euro fines. The market for battery electric vehicles has plummeted, exacerbating financial strains as traditional combustion engines gain market share.
Manufacturers are left with tough choices: curtailing combustion engine production, hiking prices for premium models, or slashing BEV prices to boost sales. Both strategies entail risks and uncertain outcomes. The most secure path to minimizing losses might involve revising CO2 targets and reconsidering the absolute ban on combustion engines, favoring a shift to climate neutrality. This would require acknowledging past misjudgments in regulatory decisions. Ultimately, the industry stands at a crossroads, balancing innovation with economic viability in the pursuit of a sustainable future.
