New German Government to Revamp Incentives for Electric Cars

New Volkswagen ID.4 electric vehicles are ready for delivery at the automaker's customer center in Wolfsburg, Germany, on March 26, 2021. RONNY ARTMANN/AFP/GETTY IMAGES
New Volkswagen ID.4 electric vehicles are ready for delivery at the automaker's customer center in Wolfsburg, Germany, on March 26, 2021. RONNY ARTMANN/AFP/GETTY IMAGES
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New German Government to Revamp Incentives for Electric Cars

New Volkswagen ID.4 electric vehicles are ready for delivery at the automaker's customer center in Wolfsburg, Germany, on March 26, 2021. RONNY ARTMANN/AFP/GETTY IMAGES
New Volkswagen ID.4 electric vehicles are ready for delivery at the automaker's customer center in Wolfsburg, Germany, on March 26, 2021. RONNY ARTMANN/AFP/GETTY IMAGES

Germany's new government said Monday it is extending the country's current system of incentive payments for buyers of electric and hybrid cars for a year but then plans to impose tougher requirements for vehicles to qualify for the support.

The economy and climate ministry that was set up when Germany's new government took office last week said it will only provide payments starting in 2023 for “electric vehicles that demonstrably have a positive climate-protection effect.”

Meeting that requirement will be based, in part, on a minimum distance cars can travel under electric power, The Associated Press.

For the next year, the current system will still apply, making buyers of electric-only cars eligible for incentives of up to 9,000 euros (about $10,200) and qualifying buyers of plug-in hybrids for up to 6,750 euros.

Robert Habeck, Germany’s new economy and climate minister, said the government is trying to ensure "continuity” while it works on a new system.

“We will become more ambitious with support in the future, in order to boost electromobility further and strengthen climate protection," he said.

Habeck is a co-leader of the environmentalist Green party. He is also vice chancellor in the three-party government of center-left Chancellor Olaf Scholz, which took office Wednesday.

The new government wants to have at least 15 million fully electric cars on the road by 2030. It also aims to step up efforts against climate change by expanding the use of renewable energy and bringing Germany’s exit from coal-fired power forward from 2038, “ideally” to 2030.



Bosch to Cut Hours for 10,000 Workers in Germany

The logo of Bosch is seen at an office building in Kyiv, Ukraine July 6, 2020. REUTERS/Valentyn Ogirenko/File Photo
The logo of Bosch is seen at an office building in Kyiv, Ukraine July 6, 2020. REUTERS/Valentyn Ogirenko/File Photo
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Bosch to Cut Hours for 10,000 Workers in Germany

The logo of Bosch is seen at an office building in Kyiv, Ukraine July 6, 2020. REUTERS/Valentyn Ogirenko/File Photo
The logo of Bosch is seen at an office building in Kyiv, Ukraine July 6, 2020. REUTERS/Valentyn Ogirenko/File Photo

Robert Bosch, the world's largest car parts supplier, will reduce the working hours and pay of around 10,000 employees in Germany, going beyond previously announced reductions and in addition to thousands of job cuts announced on Friday.

In the latest sign of the challenges facing Germany's auto sector due to weak demand and competition from cheaper Chinese rivals, Bosch had said on Friday it would cut up to 5,550 jobs, a day after saying it would cut the working hours of 450 staff, Reuters reported.

Staff mostly on 38- or 40-hour contracts at sites around Germany will have their hours reduced to 35 hours, a spokesperson said on Saturday, confirming a report by dpa news agency.

The slowdown in the German car sector has also shaken Volkswagen, which is in an escalating dispute with workers over plans to close plants in Germany, and Mercedes , which has vowed to make tougher cost cuts.