Germany may subsidize ecar sales

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by Staff Writers

(UPI) May 6, 2011

Germany may electric car sales with worth $5.4 billion.

The of Chancellor Angela Merkel has a series of incentives to boost sales, German newspapers Zeitung and Bild report.

include free parking for and eliminating the motor vehicle tax for the 10 years after a green registration, the newspaper writes.

The latter can be very attractive A car with a gasoline engine can up to $430 in taxes per year, a car runs on diesel up to $880.

The also plans to purchase of e-cars for its ministries, the newspapers

The plans aren’t yet backed by the Cabinet.

German Economy Rainer Bruederle has in the past spoken out against funding purchases with tax money.

Officials from the German car which includes such brands as Volkswagen, Daimler, BMW and Porsche, have in the past for direct purchase subsidies.

If the government really wants a position for the German market, it will have to introduce purchase funding, Daimler Dieter Zetsche told business daily Handelsblatt in If it decides against the funding, the should not pursue its goal of Germany a leading market.

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The United States, France and nations with powerful car that compete with the have already introduced funding ranging from to $9,000 per car.

Berlin had been cool toward purchase incentive models and has decided to fund research and including programs to develop the station infrastructure and boost technology, an area of expertise has long belonged to Asia.

to reduce the dependency on imported oil and cut dioxide emissions from traffic, the German government it wants to have 1 million cars cruise its highways by

Given this ambitious Berlin needs to do something to e-car sales, says Bratzel, a German automobile at the University of Applied Sciences in

Given the significant cost between electric and traditional there is no way to achieve this without subsidies, Bratzel Deutsche Welle.

Yet even won’t help if the Germans no cars to buy, or only from foreign competitors.

Germany’s powerful car industry has criticized for being a tad late to the car game, with rivals France and mainly Asia one to two ahead when it comes to serial production.

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