Christiane Benner, First Chairwoman of IG Metall, at the BMWK “Auto Summit”.

“It is good that Federal Economics Minister Habeck discussed the crisis situation with top representatives of the automotive industry today.

From the perspective of employees, the situation in the automotive industry in our country could hardly be more dramatic. The future of the automotive industry is also the question of fate for Germany as an industrial location. The problems in the automotive industry are massively exacerbated by the overall difficult economic situation. That is why it is and remains important to provide consumers with financial planning security and to strengthen domestic demand.

IG Metall’s demands for an industrial policy that focuses on investments and affordable, predictable energy costs for energy-intensive industries are part of ours 11-point plan formulated across industries. We need security for employees through a strong industrial base in Germany, good-paying jobs and stable democratic conditions. The cancellation of takeover regulations and the loss of training places unsettles the younger generation and exacerbates the shortage of skilled workers.

We have made it clear that we are currently experiencing conflicts between management and employees in many companies and that we consider the short-term, purely profit-driven actions of some management to be wrong and irresponsible.

We call on employers to stop the hectic and activist downsizing of staff and locations. We need investments in the future and securing skilled workers, staying power instead of quick returns.

Instead, let’s talk: exchange instead of excuses.

But we also made it clear that we see politicians as having a duty to do significantly more to support the political goals.

In view of the worsening crisis in the automotive industry, the slow ramp-up of electromobility, the reluctance to invest in the value chain of electromobility, the time pressure in international competition for the markets of the future and the foreseeable failure to meet climate targets, IG Metall is now calling for a rapid new funding package for electromobility.

Accelerating the ramp-up of e-mobility would help the climate as well as the manufacturers and suppliers who have invested billions in e-mobility. Investments must be worthwhile and fines next year for failing to meet climate targets would be a fatal waste of money.

A revival of the ramp-up would also make it easier for the industry to move further ahead in the race with non-European manufacturers. It would be both an economic stimulus program and an industrial policy fitness injection for a successful transformation of the automotive industry.

In addition to the special depreciation that has already been decided on for commercially purchased emission-free vehicles, the federal government should also promote the private purchase of electric vehicles and plug-in hybrids again, set up a social leasing program and examine a used car bonus.”

REQUIREMENTS OF IG METALL AT A GLANCE:

1.    The promotion of the purchase of purely electric vehicles and plug-in hybrids should also be relaunched for private buyers. It should be socially staggered and could gradually decrease over the funding period. As with the previous model, it can be granted in the form of a purchase premium or in the form of deductibility from the income tax liability (analogous to the deductibility of energy-related construction measures in accordance with Section 35c of the Income Tax Act). If politicians choose the model of tax deductibility, an additional instrument for lower income groups would have to be added.

2.   A social leasing program should be set up for users in the low income range. In particular, people with low incomes, long commutes and small businesses (care services, etc.) should be taken into account here. This also gave new consumer groups access to electromobility for whom it was previously unavailable.

3.   Only vehicles that have a relevant European share of the added value should be funded. However, all brands should be eligible, regardless of the manufacturer’s headquarters.

4.   The used EV market is critical to broader market penetration. And the fear of the decline in the residual value of electric cars is currently a factor in purchasing reluctance. Therefore, the promotion of used car purchases of a BEV or PHEV should be examined. This would also make electric cars affordable for a wider range of people. For new car buyers, the residual value risk would be mitigated and the leasing payments for new cars would be reduced.

5.    To supplement the special depreciation for commercial vehicles, the deductibility of leasing payments from operating expenses for BEV and PHEV vehicles should be increased, because a high proportion of commercial business is carried out through leasing.

In addition to promoting the purchase of zero-emission vehicles, the federal government should now also step up its game in these areas:

6.   The reduction in charging current, either by reducing taxes in the electricity price or by making the charging electricity costs tax deductible.

7.   Support for a prospective electric quota for company fleets and leasing providers, currently being prepared by the EU Commission.

8.   Ambitious implementation of the supply requirement for large gas station operators.

9.   Ambitious implementation of the EU Buildings Directive by the Federal Government, for more charging points in underground car parks, in residential buildings, at work and in retail.

10.  Ensuring financing for the development of an initial charging network for commercial vehicles and renewed purchase support for climate-friendly commercial vehicles.

11.   Further support for battery research, a key technology for climate-friendly mobility.

12.  Further funding of regional transformation networks in the years 2026 to 2028 by the federal government.

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