Future of the e-car premium
Are car manufacturers now stepping in?
December 18, 2023, 6:26 p.m
Without warning, the federal government collected the state bonus for the purchase of an electric car earlier than planned. There is great outrage in the industry. Some car manufacturers are therefore planning to maintain financial support, at least for a transitional period.
After the sudden end of the purchase bonus for electric cars, customers are now looking into the pipe. The industry is protesting and complains about a loss of trust in politics. The industry expects a slower increase in sales of electric cars.
It was only on Saturday that the Federal Ministry of Economics announced that applications for the environmental bonus could only be submitted the following Sunday. The abrupt end was justified in ministry circles by saying that money in the budget had become scarce. The background is the Federal Constitutional Court’s ruling 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 let state funding expire “soon”. They initially left the end date open.
Before the federal government had to correct its budget planning, it was planned to grant a purchase bonus for new cars of up to 4,500 euros until the end of the year. In addition, there was a half allowance from the manufacturer, i.e. up to 2250 euros.
On January 1, 2024, the state premium should be reduced to 3,000 euros and then expire at the end of 2024. Now all of that is no longer applicable. What is particularly problematic is that the bonus is only paid if the vehicle has been registered. Completing a purchase agreement is not enough. However, there are often several weeks or even months between order and delivery.
Ordering a vehicle is generally legally binding
The government has promised consumers that it will support them in purchasing an electric car under certain conditions, said the President of the Association of the Automotive Industry (VDA), Hildegard Müller. “To deny these people support now because you want to continue to stick to the registration date instead of the purchase date of an electric car undermines consumers’ trust in the reliability of politics.”
In addition, setting the deadline for Sunday (December 17th) was disproportionate, criticized Müller. “We strongly plead with the federal government and the Bundestag to find a solution as quickly as possible that guarantees customers the bonus they planned for when they buy the car.” Consumer advocates pointed out that ordering a vehicle is generally legally binding.
In individual cases, it must be checked whether the contract contains other regulations and gives the buyer the opportunity to withdraw, according to the Federal Association of Consumer Advice Centers (vzbv). This would be the case, for example, if the federal share of the e-car funding was guaranteed in writing. Some car manufacturers are planning or considering paying the state purchase premium for a transitional period.
Trust in politics “deeply disappointed”
The car company Stellantis with the brands Peugeot, Opel, Fiat, Jeep and others wants to do that. The company announced that the full premium of up to 6,750 euros would be guaranteed until the end of the year for electric vehicles that were eligible for funding under the previous guidelines. In addition, Stellantis wants to cover the originally planned reduced premium of up to 4,500 euros for electric vehicles that have already been ordered and are registered by their owners by February 29, 2024. The Korean manufacturer Hyundai guarantees its electric car customers who have signed a contract by December 17th the full environmental bonus from 2023.
The car manufacturer Audi criticized that with the immediate end of the environmental bonus, the traffic lights had broken their promise to customers. The trust in politics has been “deeply disappointed”. Customers have now canceled electric vehicles that they have already ordered. “In the upcoming budget negotiations, we expect a clear commitment to promoting electromobility and political accommodation for affected customers,” said Audi.
Volkswagen spoke of a “deep loss of trust”, but initially commented on possible higher discounts or goodwill regulations. BMW expressed “understanding for the strained budget situation and the resulting decisions of the federal government. In the long term, new technologies must support themselves on the market.”