Major car makers step up to provide subsidy after Germany back-away

Major car makers including Audi, Mercedes-Benz, Satellantis, and the Volkswagen brand say they will fund a subsidy for German electric vehicle (EV) buyers after the government backed away from the subsidy program.

On Monday, the German government ended the subsidy prematurely from the official timeline on December 31.

The e-car subsidy was intended to apply until the end of 2024. Subsidies already applied for will be paid out but no new applicants will be accepted.

Previously, the German EV subsidy has been up to 4,500 euros ($4,909). Berlin has announced not continue in 2024 and a federal share of 3,000 euros will be applied from next year.

The scheme had offered up to 6,750 euros funded by the state and carmakers based on the value of the EV.

Volkswagen Electric Vehicle ID. 2all

Related to this, Volkswagen on Tuesday said it would fund the full subsidy of 6.750 euros for private customers in Germany eligible for its all-electric ID. range before December 15. Those registered between January 1 and March 31 will receive 4,500 euros.

Audi on the other hand, said it would also fund the full subsidy for cars ordered before December 16 and delivered by the end of the year.

Mercedes Benz would do the same for orders delivered and registered between December 18 to 31. Meanwhile, the carmaker will provide subsidies from its side starting in January 2024.

Stellantis from his end said that it will also cope with subsidy until December 31 and thereafter a reduced subsidy for vehicles registered by February 29.

(source – Reuters)