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Looking for buyers: German carmakers are suffering from overcapacity and dwindling demand. The corona crisis is putting itself under pressure. Now VW and BMW are campaigning for another purchase bonus.
The call for further support in the corona-Crisis will also occur among Germans Car makers volume up. In any case, characterized by falling demand and excess capacity, the week-long shutdown increases the pressure on the most important German industrial sector.
Volkswagen Show stock market chart calls for a new government subsidy because of the impending slump in demand. “In this situation, a premium should be broad and also include modern vehicles with internal combustion engines,” says Ralf Brandstätter, the manager responsible for day-to-day business at the VW brand “Handelsblatt” (Monday).
The bonus should not replace the previous funding for electric vehicles, but rather supplement it. A new funding model could be based on saved emissions of the climate-damaging exhaust gas carbon dioxide (CO2). “We are going out of the crisis and into the green transformation.
In view of the fact that Germany’s most important industry represents ten percent of domestic economic output, many people and companies in Germany benefited from it if the automotive industry emerged from the crisis quickly due to stimulated demand, emphasized the VW manager.
BMW campaigns for “innovation bonus”
Also BMW Show stock market chart campaigns for government support, according to the report – but calls this a less descriptive “innovation premium”. “As an economic measure, it can boost the economy and at the same time accelerate the switch from customers to climate-friendly technologies,” quotes BMW boss Oliver Zipse.
Political support for a further purchase premium also comes from federal states with large production sites. Bavaria’s Prime Minister Markus Söder (CSU) has already spoken out in favor of incentives when buying a car. Lower Saxony’s Prime Minister Stephan Weil (SPD) launched the idea of an “ecological scrappage bonus” to promote the sale of greener cars with tax money.
Car manufacturers can only slowly start up production again
The German carmakers are slowly starting up production again on Monday after weeks of downtime. But the factories will not be able to return to their old output as quickly. Firstly, because of the Corona crisis, they are still obliged to make considerable restrictions and take precautionary measures. On the other hand, the industry is already suffering from lower demand and overcapacity in German plants.
The car market in the European Union has shrunk by more than half due to the Corona crisis. In March, around 567,000 vehicles had 55 percent fewer new cars on the roads than a year ago, as the manufacturers’ association ACEA announced before mid-April.
At the same time, automakers are facing major challenges with the switchover to electric cars. Experts say that with the most important industry in Germany Loss of up to 100,000 jobs ahead.