Auto Summit: "Better to do nothing than to have a flash in the pan"

It was an "almost daily conference" for him, said Federal Economics Minister Robert Habeck (Greens), after the automotive summit as he is in constant contact with companies. The results were rather general, as can be seen in a video of his speech broadcast on n-tv.de

The important thing for the German Vice-Chancellor was that it was already worth buying an electric car today. Firstly, car manufacturers have replaced the EV subsidies, which suddenly disappeared in December, with discounts of a similar amount, and secondly, running costs are lower, especially if you charge with self-generated solar electricity. Added to this are the abolition of vehicle tax, income from greenhouse gas quotas and two-way charging: from next year, it will also be possible to feed electricity from the battery back into the grid (thereby reducing electricity costs).

The Minister showed a comparison of energy costs showing that electricity, which costs around five euros per 100 km, is significantly cheaper than petrol (more than 10 euros) or diesel (more than eight euros).

Mr Habeck also insisted that any subsidies would always be retroactive. This means that even those who buy an electric car before such measures are decided will benefit from the subsidies. This is what we have done with the reinforcement of the tax eligibility of company cars and the increase in the amounts taken into account for the privilege of company cars.

Four topics were discussed:

• Chinese customs duties Habeck believes they are justified by subsidies. However, a political solution is preferable to tariffs, and this was supported by the representatives of the car industry and suppliers at the meeting.
• Accountability of the GHG quota: we talked about how we could boost the market to make it worthwhile to drive an electric car.
• Improving the recharging infrastructure: Germany is fairly well placed in comparison, but there is still room for improvement. On the one hand, a law has been introduced in the Bundestag requiring every petrol station to be equipped with a recharging point, and on the other, the law on energy in buildings provides for simplified installation of recharging points.
• EU fleet limit values: the limit values known since 2019 should be revised in 2026. Car industry representatives have asked for this date to be brought forward to 2025. Habeck is willing to comply to this request, but points out that the Federal Republic's erratic approach to e-fuels has not won it any friends within the EU, which is why he cannot promise anything on the subject.

More on the matter:

Germany wants to save its crisis-hit automotive industry

ACEA: Europe's car manufacturers demand more help from the EU

Mr Habeck did not say whether there would be further subsidies. Nor does he want to discuss the pros and cons of certain measures, because there are always consequences. "We can only discuss and decide behind the scenes".

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The participants did agree, however, that there should be no flash in the pan. In other words, there is no point in stimulating demand for electric cars in the short term if they are going to fall into a deep hole when the measures expire. Better to take no actions than to have such a "soufflé effect", according to Habeck.

Various measures have been discussed, which now need to be discussed within the government and government parliamentary groups, before being taken up again with the car industry.

In conclusion

Was there nothing but spending? As the Automotive Summit is an online conference, costs should be limited, as should the results. The event was probably a sign that the federal government cares about the needs of the auto industry. We suspect, however, that any measure that costs money will be opposed by Finance Minister Christian Lindner (FDP). We are therefore sceptical...

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