Immediately automotive company Volkswagen started producing a revolutionary all-electric vehicle, the German government and the car industry decided to raise collective incentives to purchase electric vehicles.
However, a car conference was conducted on Monday night aimed at encouraging mass production of sustainable vehicles. It was a deal between the government and parties in the car industry. Under this deal, electric vehicles incentives that were less than € 40,000 ($44,500) would increase to € 6,000 (about $6,700). Plug-in hybrid buyers would be issued a € 4,500 subsidy, up from 3,000 € for the same price range.
The incentive would increase by 25 per cent for electric cars valued over € 40,000. Every vehicle with a price of over € 60,000 would not receive support.
The subsidies would be divided equally between the industry and the government. The subsidies would also be extended from late 2020 up to late 2025.
In contrast to the question of tariffs, both parties addressed ways to improve electric car facilities
The office of Chancellor Angela Merkel stated that the state would invest € 3.5 billion to expand the charging stations for electric cars. In 2022, 50,000 publicly accessible charging stations will be built all over the nation compared to 21,000 at present. However, the estimate is well below the 1 million electric car charging points that Merkel said she wants throughout the country by 2030
The news came on Monday when Volkswagen started to manufacture its hybrid ID.3 mass vehicle. The great day had arrived on an otherwise normal Monday in November. Prominent people were everywhere at the factory gates in Zwickau. The VW chief Herbert Diess was around, and the Saxon Prime Minister was also in attendance. The guest of honour was Chancellor Merkel. The firm announced its plans to launch only electric vehicles in its plant in Zwickau’s eastern town from 2021 on, each year with up to 330,000 electric vehicles.
But VW was not just e-mobility innovators. Then, the debacle of Dieselgate pushed them into a gradual transition. Zwickau’s presentation is a symbol of its presence today. In an attempt to turn the business into a fully operational e-plant in two years, the company has poured € 1.2 billion ($1.34 billion) into the factory. From 2021 on, over 300,000 electric vehicles of different VW brands are expected to be produced every year from there.
Transforming a car factory at such a level is an enormous challenge yet strategically feasible while still making vehicles. The real question will be how to effortlessly get employees into that new future with such a massive change