German Chancellor Angela Merkel’s Cabinet projects a plan to roll out 1 million electric cars to run on the famous German autobahns by 2020. The plan requires ‘financial incentives’ which will begin in 2012 for supporting the sale of plug-in cars.
Several German car companies are trying to compete with their Asian counterparts in EV technology.
Volkswagen AG revealed that it will be able to bring in its 1st electric car in the market around 2013. On the other hand, Daimler AG is working in collaboration with Tesla Motors Inc., a California-based electric automaker, to develop electric drive systems and batteries for EVs.
According to the reports, Chancellor Angela Merkel’s cabinet in Germany pledges to support electric cars with funding of $705 million or 500 million Euros. However, the German cabinet will discuss further specifications during the next legislature period in the fall. The coalition government aims to reduce greenhouse-gas emissions by about 40% by 2020 in a program that will increase the share of electricity from renewable sources to as much as 30% from the current 12%.
According to Transport Minister Wolfgang Tiefensee, “We’re facing a paradigm change in the automobile industry. It’s our goal to reduce energy consumption and explore new energy sources if Germany wants to keep its place in the world as environmental leader.”
“The program is aimed at having a positive impact on investment decisions, give producers security and support the sale of electric cars.” was the dictum in the plan as released to the media.
As the plan was declared, the opposing Green Party condemned it for ‘being too narrow in focusing only on electric automobiles.’ The party insisted that every car that runs on renewable energy must be entitled for funding.
The leader of the Green Party parliamentary group, Renate Kuenast also criticized the German government for not offering sufficient incentives so that people could switch to electric cars or hybrid technologies. She said, “The government creates a subsidy program for people handing in old cars but it has no incentive program in place to promote new electric vehicles.”
The leader also expressed the need for a vital balance in the price between electric and regular cars. She voiced that price differences of 5,000 Euros for an EV will not be able to convince people to change their car.