Angela Merkel: Germany Must Invest Heavily In Electric Cars

JUL 16 2017 BY MARK KANE 37

Chancellor Angela Merkel, while visiting Daimler’s ACCUMOTIVE’s battery plant in Kamenz, said that Germany must invest more heavily into electric vehicles, to ensure the country is not left behind (somewhat ironically, considering the German government’s recent and fairly lackluster EV rebate of up to  €4,000 for BEVs/ €3,000 for PHEVs, but 50% cost-split with the OEMs themselves).

Plug-in electric car registrations in Germany – April 2017

As for the sales on the ground, this year has begun great in Germany (relatively speaking), as sales have doubled year-over-year.

However those numbers are off of a low benchmark, and the goal of one million plug-in cars by 2020, set few years ago, is now totally out of reach.

The Chancellor herself came under fire in May when she admitted the target will be missed.

Despite the results to date, Merkel encouraged automakers to invest more in the tech, and also to add battery cell production to the equation. Currently all German manufacturers are using batteries from Asian companies, with a few fractional exceptions.

Even Daimler, which is currently investing $10 billion into building a battery factory solely for assembling the packs.

“We need long-term horizons and companies that invest in the future. It is important that electric mobility is ready for the market as quickly as possible.”

“Merkel said new technologies sometimes take time to get off the ground and end up being exploited by those other than their original inventors, citing the example of German engineer Konrad Zuse, who developed the first programmable computer in 1941.”

“”This should be a lesson for technology policy. We don’t want to experience that again,” she said.”

Volkswagen

Volkswagen I.D. Crozz

Other German groups are also shifting strategies to focus on plug-ins.

Volkswagen is preparing for a big push when its new MEB platform will be ready in about a year, while separately Audi and Porsche are also developing their own models on  theVW Group shared platforms.

Other German OEM, BMW is already one of the top plug-in manufacturers, with a broad portfolio of 9 plug-ins and even more planned for the near future; hopefully some of them will be serious ‘volume’ offerings.

Angela Merkel noted that the German government has invested 35 million euros into battery research, and she had been briefed about the latest in lithium battery cells, which could allow cars to travel up to 1,000 km (600 miles) without needing to be recharged. Well, that would be something, unlike Germany’s sales projections, if those range numbers turned into a reality.

source: Reuters

Categories: BMW, Daimler, Volkswagen

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37 Comments on "Angela Merkel: Germany Must Invest Heavily In Electric Cars"

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Hauer

Pushing diesel forever, supporting coverup of diesel scandal. and now blablabla.
Thanks, but thanks no.

Tosho

+1

John

First they resist hybrid gas engine,then plugin hybrid,then BEV. Now all this? Angela, you guys are stealing from Japanese, Elon Musk, not the other way around!

Alaa

She had https://tonyseba.com/

and

https://en.wikipedia.org/wiki/Jeremy_Rifkin

and many others, years ago. Then Tesla came and still she did nothing and will do nothing because Putin has to give her the ok first and he will not.

Look at this from Wiki

By holding 17% of Volkswagen’s ordinary stock and 13% of preferred shares, Qatar’s sovereign-wealth fund is the third largest investor shareholder in the firm.[37][38]

Does any one think they will allow Electrification?

MB etc also are partly owned by the Arabs.

KM

If EU was to introduce quotas of EVs to be sold like they are planning in China then it simply would not matter who was the share holder.

zzzzzzzzzz

EU is not communist dictatorship like China yet, they can’t just send tanks to streets and kill all unhappy population. And voters would not be happy in most of EU countries with too many quotas and high car prices. They are already quite high and even forcing controls of existing diesel emission is political problem.

Mark.ca

But they are thrilled with not being able to breathe and start wearing face masks like the Chinese do…seriously, buy a plane ticket and visit and major city. People will have no choice on this, they will ask for it.

zzzzzzzzzz

I have spent half of my life there. Yes you can see from above some grey cloud in a city valley sometimes, and so what. Few are asking for stricter emission inspections, they are just mad their old beaten up diesel not passing it and blame “conspiracies against diesels”. Neither are they putting money where their mouth is when the time comes to buy a new car. Diesel cars are still almost half of new car sales in Europe, although in decline recently.

Mark.ca

Not sure which area of EU you talk about, where my parents live 90% of cars sold are diesels. They are now starting to see the writing on the wall. This will take place through policy imposed on the dumb people otherwise they will keep suffering and do nothing about it. It’s human nature to live for today and not care about tomorrow…because, you know, tomorrow you may be dead anyway.

zzzzzzzzzz

Yes. Though if you as politician treat people as dumbos and push them around, they tend to get annoyed and elect somebody like current POTUS to show you a middle finger. Or vote to kick EU out and mind their own business on island.

It may take decades until the “writing on the wall” will make any significant difference on new car sales, not to mention existing cars & trucks.

Paul Smith

Decades? Hahaha. London already has restrictions on non zero emission vehicles. So do most large cities in China, and many EU cities are ready to start.

john Doe

They are.. just like the Euro classifications change for ICE cars.
Read the eMobility stuff from EU.

Production numbers will be high. There is a real infrastructure and business commitment.

The global EV sales are still a drop in the bucket – but between 2018-2022 will be an interesting time.

john Doe

For a short introduction on emobility:
https://ec.europa.eu/jrc/en/research-topic/interoperability-and-e-mobility

It has to do with the EVs, smart grids, solar and wind energy, and other infrastructure cases. They are making the protocols for smart grid and EV interaction – so the EVs can work as batteries for the grid, and charge when it is cheapest.

Joe

Norway is a big petroleum producer and still pushes for EVs.

john Doe
Cars have alwayw been super expensive in Norway. There has been a tax on vehicle weight, engine volume, the power it produces, the fuel the engine used and so on. The taxes have changed gradually over the years. Vehicle weight has increased due to safety issues, and just the airbags weighs a lot. So they had to reduce the taxes on weight, as safer cars are heavier. They had to change the engine volume tax, as a Mazda with a Wankel engine (small volume, high power) would be very cheap. So then they changed the taxes from volume to how powerful the engine was. More power, more tax. Then newer technology made even stronger enginges more environmentally friendly, so they focused on CO2 emmissions due to global warming (and the NOx was ignored). Diesel engines became cheaper, and they used less fuel as well, and had a higher torque at lower RPMs. Then they started to change that as well, and the number of diesels in slowly falling. The electric cars had no emissions, and there was one or two small Norwegian companies that made EVs. To help those companies, and to reduce emissions they started to sell EVs with… Read more »
Ambulator

I hadn’t realized that Jeremy Rifkin was so successful in Europe. No wonder they are having problems.

paul smith
AlphaEdge

> and she had been briefed about the latest in lithium battery cells, which could allow cars to travel up to 1,000 km (600 miles) without needing to be recharged.

They fed her a fantasy to keep the funding going.

Sure, and I could make my Short Range, 4 Seat, EV Conversion, into a 2 Seat model, and use the space for more batteries and get more range, too!

Or put an 8 inch Lift Kit on it so I could increase the range with a double thick pack underneath, too! Or Both!

Basically, What kind of Vehicle would this 600 mile range per charge EV be?

Pushmi-Pullyu

“What kind of Vehicle would this 600 mile range per charge EV be?”

Probably one with all the cargo space and most or all of the rear seat passenger space taken up by batteries. Perhaps like this:

https://phys.org/news/2010-05-electric-vehicle-record-breaking-miles.html

Pushmi-Pullyu

Good to see the German Chancellor “gets” the importance auto makers keeping up with the EV revolution. Too bad German auto makers don’t.

Eventually that’s a problem which will correct itself. But the German auto makers, and the workers in that industry, may not like how that works out.

Burying your head in the sand and ignoring a disruptive tech revolution is not a winning business strategy. Just ask Eastman Kodak!

If you do not control events, then events will control you.

SJC

Plenty of time with less that 1% of the cars EVs. First to be second works many times.

Alan

+99% !

Looks like Tesla was first with Model S & X, and will also be second, with the Model 3!

By the time they are shipping into Germany, they should already be moving up from producing 4,000+ Model 3’s per Week, to 10,000 per week. Can they get moving faster than late 2018?

Tosho

But they are not even in the top 10 …

midimal

Angela stop this Diesel b******* in Germany – and start SERIOUS EV-Programms!

Davek

…and this ahead of the the plug-in rebates being reduced at the beginning of 2018; 3000€ instead of 4000€ for EVs, 2000€ instead of 3000€ for PHEVs. And the program will end in 2019, despite the fact that it was funded with 1.2 billion Euros and not even close to that amount will have been used by then.

We’ll see what happens after the election in the fall, but I’m not optimistic that this will be a major issue, or if it is a major issue, that it’ll be something that most people are in favour of. Frankly I assume that the average Diesel-swilling German would rather not see subsidies for cars that they’d never buy themselves… :'(

Delta

This picture captures the true essence of a “Kodak Moment”.

jpo234

Not really. Kodak saw the market for its main product vanish.
Car makers are more like camera makers like Canon, Olympus or Nikon. They are still making cameras, just with digital sensors instead of film.

Tosho

And Kodak did not build cameras?

jpo234

Some, but their bread and butter products were films. And digital cameras simply did not need films anymore.
Car makers main product are cars that are (for traditional OEMs) currently powered mostly by combustion engines. BEVs are still cars, just powered by different engines.

jpo234

A “Kodak Moment” for car makers would arrive if somebody built a Star Trek like transporter that makes cars superfluous.
The transition to BEVs shakes them up, but it doesn’t replace their main product.

Someone out there

Batteries aren’t just important for German car makers but also for the “Energiewende”. They have every reason to go all in on battery manufacturing at this point.

trackdaze

Here are some back of the eyelid projections for the german market

50000 on the road up to 2016
50000 sold 2017
100000 sold 2018
200000 sold 2019

So by 2020 half a million.

Now if it were to double again in 2020 they wouldnt be too far off.

Worth mentioning BMW* alone is likely to sell 100,000 plug ins Worldwide this year.

*granted some of them have terribly undersized batteries.

bogdan

They are still making huge profits today, but everybody knows that this will come to an end soon.
Merkel is trying to persuade the automakers to switch to EV for years. She just doesn’t have the power to force them to do it, nor to punish them for not doing it. And she knows time is running up.

Tosho

“Investing” in something and making something happen are two different things…

John

They do not possess any advantage any more if pushing for EV, that’s why they were not doing it. They have excess wind gerenation and BEV is the right way to absorb it. They are jumping in because of Tesla because they don’t want to be perceived technically inferior which they were already so that they can sell gas mobile for exorbitant price. End of story! German hypocrisy at its best!