German Minister Tells Automakers To Invest Billions Into EVs Or Lose

MAY 1 2018 BY MARK KANE 17

The German government seems to be concerned about the position of German automotive industry among the EV competition.

Plug-in electric car registrations in Germany – March 2018

German Economy Minister Peter Altmaier complained in a newspaper interview on the manufacturers – he did not understand why the firms had hesitated for so long.

The main advice is to invest heavily “two-digit billion amounts,” which to some degree seems like a desperate cry really.

Sales of plug-in electric cars are increasing in Germany though, so maybe the situation isn’t that bad.

Read Also – Germany Sets Plug-In Electric Car Sales Record In March

Peter Altmaier would like to see German battery production facilities too.

“Otherwise we’ll have to accept that a large part of the added value will be produced in Asia or the United States, instead of here with us, he said.”

The government will try to support electrification in terms of incentives, research funding and infrastructure funding, but there is pressure on the manufacturer to introduce long-range, affordable electric cars and to be first in autonomous driving technology.

“To help reduce pollution levels and avoid a total ban on diesel vehicles, VW, Daimler and others have stepped up development of electric cars.”

“The new German coalition government plans to ease the tax burden on drivers of electric vehicles, provide at least an additional 100,000 charge points across the country and subsidize car-sharing to push a shift to greener transportation”

Source: Reuters

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17 Comments on "German Minister Tells Automakers To Invest Billions Into EVs Or Lose"

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ffbj

The genie is out of the bottle, the die is cast, you’ve come to the proverbial bridge that must now be crossed.
Musk is going to get what he wanted as evs advance on all fronts.
Peak car is upon us, and the losers will be diesels first, 3-5 years left, due to regulation, and then gas cars, 10-15, with some PHEV’s still around.
.

Get Real

He gets it.
Tesla was a shot across the bow for thepreviously very laggard German OEMs dependant on exporting profitable luxury and sporty cars.

John Doe

All ICE cars are illegal to sell in 7 years in Norway.

theflew

It’s not Norway ICE manufactures are worried about. It’s China and then the US. The problem is China and the US are taking different approaches to electrification.

Terawatt

Not quite. Used ones will still be legal…

John Doe

This must be some politician nonsense. He must pay attention.
They have invested double digit billions.
They have part suppliers that have invested billions.
EVs will offer more quality and range for less money in the future.. It’s a given.
Yes they were slow. But knowbody made money on EVs then
They might invest in a factory that makes battery cell materials. If it is wice, in case new SS batteries comes to market. . That is another question. More manufacturers may offer more competition, and give us better batteries faster. EV racing with equal Motors and batteries are a fail in F1 like competition. Weight should be the limmit.
They have battery factories. Prismatic/pouch cells are made in their own factories in Germany (For some models). The rolls of material are bought and made in Asia.
All countries want to make as much as possible domestic. What is smart in short term, may be idiotic in the long run.
Sourcing materials, and develop technology in house has some advantages.

Rob R

Herr Altmaier is dead right. The next 1-2 years is critical. The Chinese (not Tesla really) are poised to seize this business. I expect the Koreans to be in there. The rest are in trouble. Ford’s recent announcement they are to stop making cars for the US is a statement of intention to rerun the Alamo (the result will be the same). The Germans have the financial and engineering strength to be part of the future, but do they have the courage and the will to drive it through?

antrik

Not so sure about Koreans. They don’t have any serious EV programs thus far. They do sell batteries to most “western” car makers, but not Chinese ones. If the “western” car makers fail, so will Korean battery makers.

Greg

Where are they supposed to get money for it? Incentives? I haven’t noticed any declarations. Financial markets? At their size gains are low and risks very high. Or maybe reinvest profits from selling ICE cars and use their resources to add value new entrants can’t provide?

All big players are restructuring and working on electrification at full speed, but as long as their revenue is generated mostly by legacy products their marketing departments have only one task.

antrik

EV investments are still only a fraction of ongoing investments in ICE development. Considering that there is no point in further development of ICE beyond the next couple of years, they sure could shift more of these investments towards EVs…

Johan Mo

German automakers are already leading the EV rally. It’s Japanese and Korean automakers that really need to step up.

Clive

I’d say the Korean’s are way ahead of most.

antrik

Not sure what makes you think that. Hyundai/Kia has some of the best compliance cars, but still no serious EV program as far as I’m aware.

SJC

He can say what he wants, it is not his money.

Get Real

Kind of like your Trumpster then?

Clive

Wrong Forum Brosef !

Ted

“Two-digit billion” is my new favorite number.