German Chancellor Olaf Scholz called on Tuesday for a European subsidy program for electric vehicles, as the country’s main car industry struggles with the transition to battery-powered cars.
“We need incentives to buy electric cars – as a European bonus or as direct support for electric cars made in Germany,” Scholz said on social media after visiting US carmaker Ford’s plant in Cologne.
Scholz made the call as the campaign got underway ahead of an expected snap poll in February, following the fall of the government last month.
The elections have not yet been officially called, but Scholz has already set up his stall and promised to protect jobs and support working people as they return to work.
But the context for the campaign is unfavorable for the chancellor. The German economy has shown little growth in the past two years and the stagnation is expected to continue next year.
The outlook is particularly bleak for German automakers, which face high costs, weak demand and increasing competition from China.
New purchasing assistance for electric cars was a key ask for manufacturers, who saw sales suffer after the government ended a subsidy program late last year.
The electric vehicle financial aid program fell victim to a budget crisis that would ultimately drive a wedge between Scholz’s coalition partners and topple the government.
The crisis in the automotive industry has now led to a series of announcements of job cuts in the key sector.
Volkswagen, Europe’s largest carmaker, recently said it was considering closing facilities in Germany for the first time in its history.
And at Ford, where Scholz spoke on Tuesday, the group has said it plans to cut 2,900 jobs in Germany by 2027.
After companies invested billions in the transition to electric cars, the government had to do “what we think is necessary in terms of support” to make progress, Scholz told workers at the plant.
This meant that energy prices had to remain low and that the tax benefits for electric commercial vehicles were maintained, Scholz said.
“We also want the whole of Europe to make an effort,” Scholz said.
“We need sales support that works across Europe or approval from Europe to encourage production to promote sales in Germany.”
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