Where does the money go?
Germany’s Focus magazine quoted industry expert Stefan Bratzel as saying that Germany will fall far short of the federal government’s goal of 15 million electric cars by 2030. The reaction from the auto industry followed immediately: Subsidies for the purchase of electric cars should not be reduced, as is currently the case in Germany ongoing, but on the contrary to increase.
The influence of subsidies on the market for anything could be discussed for a long time, but in Germany, as in the Czech Republic, there is much more debate about who the subsidy money goes to. In the case of subsidies for electric cars, of course, the money does not go directly to the manufacturer, as, for example, in the case of agricultural subsidies. But it is a form of financial support for the sale of specific products. Without the subsidy, many customers would not buy the product and the car company would not make a profit on it.
In the case of such support for European industry, many critics have not yet spoken up. Rather, on the contrary, many customers, ecologists and others complained that the support was too low and “why are there no subsidies in our country”, etc. But in all this, cars from China invaded the European market. According to Ferdinand Dudenhöffer, a well-known expert on the automotive market, Chinese car companies are advancing very quickly not only in car sales, but it is likely that they will also build production plants in Europe: “After the Chinese battery factories, car companies will come next. It’s a matter of time,” says Dudenhöffer.
2023-08-27 17:03:00
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