Higher e-car premium: massive criticism, Minister of Transport backtracks

The proposal by Federal Transport Minister Volker Wissing (FDP) for higher and longer e-car funding has caused considerable criticism. Wissing is now rowing back.

May 10 update:

Transport Minister Volker Wissing (FDP) has received severe criticism for his e-car funding plans, as reported by the Tagesschau. Wissing is now clearly rowing back on Twitter and claims that he neither wants a scrapping premium nor a higher purchase premium for electric cars.

Update end, beginning of the original message:

Federal Transport Minister Volker Wissing (FDP) is planning even higher funding for electric cars. The Handelsblatt reports.

Accordingly, the electric car premium should not only be extended until 2027, but the subsidy should even increase. Because so far there has been a maximum of 6000 euros in e-car subsidies from the state, provided that the e-car costs a maximum of 40,000 euros. According to Wissing’s plans, this subsidy should increase to 10,800 euros per electric car, which costs a maximum of 40,000 euros. The state would thus pay just over 25 percent of the purchase price. On top of that, 3,000 euros in funding from the car manufacturer should continue to flow until 2027, which will reduce the purchase price even further.

For vehicles that cost between 40,000 and 65,000 euros, there is currently a total subsidy of 7,500 euros: 5,000 euros from the federal government and 2,500 euros from the manufacturer. That should also change, Wissing wants to pay 8,400 euros instead of 5,000 euros per electric car with a list price between 40,000 and then only up to an upper limit of 60,000 euros.

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But one new requirement should be added: From the second half of 2023, buyers will have to scrap a combustion engine car that is at least eleven years old in order to receive the full scrapping premium.

SPD not enthusiastic

Wissing’s plans are unlikely to meet with much enthusiasm from coalition partner “Bündnis 90/Die Grünen”. Because all purchase grants should expire according to the previous plan in 2025. That’s what the coalition agreement says. already reports that the SPD has criticized Wissing’s plans. Federal Economics Minister Robert Habeck, on the other hand, emphasized to Der Spiegel that his Federal Ministry for Economic Affairs and Climate Protection (BMWK) is responsible for the electric car premiums and not the FDP-led Ministry of Transport.

According to the Handelsblatt, the e-car subsidy plans (which, according to Wissing, also include further funding for the controversial plug-in hybrids) will cost up to 73 billion euros by 2027. In addition, experts doubt the effectiveness of Wissing’s plans to achieve the climate goals of the federal government. Critics point out that a speed limit on motorways costs nothing and would still save two million euros in CO2.

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