Berlin plans powerful spark for electric car sector Business …

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Berlin plans powerful for electric car sector

The German wants to see one million electric on the nation’s streets by 2020 and is its investment in research and development. But wonder if government intervention is the strategy.

Berlin hopes electric cars will industry as well

Berlin to see one million electric automobiles quietly down German by 2020 and is revving up research and to achieve that goal, though some experts subsidies can lead to market

The federal government plans to its electric vehicle research and aid, pouring an additional 1 euros ($1.4 billion) the RD budget by 2013 in a bid to make a leader in the sector.

Right only about 2,300 of the 42 cars registered in Germany run on According to a report released on by the National Electric Mobility — a government-sponsored council up of auto industry representatives, associations and unions — the most optimistic projections that only 450,000 cars would be put on German by 2020 without a government to promote them.

Strategies to achieve the one-million include tax rebates, dedicated lots, special traffic for e-cars, and increased government use of vehicles.

No direct rebates

Minister Ramsauer says wants ‘intelligent’ e-car

But Chancellor Angela Merkel has direct subsidies to consumers to all-electrics, which are more than traditional automobiles. i-MiEV, one of the first electric to be mass-produced, costs more 30,000 euros — more than similar, vehicle.

France’s Bonus-Malus offers a 5,000 euro to consumers who buy a vehicle with CO2 of 60 gr/km or less, which all-electric cars and many hybrids.

But a program similar to Germany’s for clunkers program, which rebates to people who traded in vehicles for more fuel-efficient is not in the works, Merkel and other officials, such as Transport Peter Ramsauer, have

Germany prefers another doubling its investment in basic and development to more than 2 euros ($2.8 billion) and on key areas like battery The automobile industry has also 17 billion euros in investments the next few years.

Tax incentives are under discussion. Owners of vehicles could be exempt road taxes for 10 years.

with new rules that see electric cars using bus and zipping past regular stuck in traffic jams, the is also considering creating zones where battery would be free.

We’re going to see these come in very quickly, said. I’m certain German producers will be in the at the right time.

At the forefront

hopes the electric car push help keep its all-important sector in at the forefront of global While companies such as BMW and the maker of Mercedes-Benz cars, enjoyed great success in the segment, they have slower to hit the gas pedal when it to electrics.

BMW, however, is set to its first all-electric urban in 2013 — two years of schedule. Volkswagen will its electric offering in two years’ while Daimler is due to present an version of its Smart car and a battery-run of its Mercedes A Class later year.

Unions have in favor of government support, since it is estimated that new jobs could be created by the sector in the coming years.

So workers (in the automobile sector) do not to fear that their will be axed as a result of electro-mobility, said Berthold head of Germany’s metalworkers

Subsidy ‘nonsense’

But state to promote e-mobility are not without Germany’s Monopolies Commission, a which advises the government on competition issues, has rejected the of state support for electric

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The high price tag for electric has kept sales low

According head Justus Haucap, it is unclear whether electric really have a future or be replaced by another technology, he the Euro am Sonntag newspaper.

said he did not see any market failure could justify such a subsidy and hoped that an subsidy would not be the next bit of to follow policies such as for clunkers or its renewable energy which promotes the use of solar and power.

The exact outline of the government’s car push will become in the new few days. The issue is to be discussed by the cabinet on Wednesday and a final decision is expected shortly

Author: Dirk Kaufmann

Editor: Sam Edmonds

Germany to pump billions into car industry

Germany plans to a leading producer and consumer of cars in the near future. But accuse Berlin of using concerns as an excuse to engage in practices. (15.05.2011)

Industry drive electromobility forward

carmakers, parts suppliers and companies are pooling resources to electromobility solutions. Daimler and are setting up a joint venture to electric motors — an first. (13.04.2011)

Pressure on German government to promote cars

Germany is targeting a fleet of one electric cars by 2020. But the forward isn’t clear, and say the country needs to pick up the to protect the future of its auto (25.02.2011)

Daimler boss says the car’s future is

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