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German auto production may fall by 25% in 2020, the auto industry calls for more aid from the government.
Sep 9,2020 13:31CST
The content below was translated by Tencent automatically for reference.

SMM: according to reports, German Transport Minister Andreas Scheuer said that the German auto industry needs more government assistance, including providing subsidies for the purchase of low-pollution internal combustion engine vehicles to help the industry withstand the impact of the pandemic.

In an interview with DLF Radio, Scheuer said that the number of electric cars is limited, while some internal combustion engine vehicles have relatively low emissions. German Chancellor Angela Merkel's ruling coalition is divided on internal combustion engine cars. Scheuer's Christian Social Union (CSU) supports consumers to buy internal combustion engine cars, while other political parties insist on focusing on the promotion of electric vehicles. Ms Merkel said last week that she understood the CSU's position but did not see the need to expand the government's economic stimulus package at this time.

Germany has begun offering purchase subsidies of up to 9000 euros ($10600) per electric car to boost car sales. "all the assistance we have provided so far, such as wage support, is having a positive impact, but this crisis will be with us for a long time," Scheuer said. When the German auto industry is in crisis, it will also have an impact on the rest of Europe and its ability to compete with the United States and Asia. "

The German auto industry is in its worst crisis in decades. At the same time, with the end of the era dominated by internal combustion engines, the rise of car-sharing services has led to shrinking consumer demand for cars, and the auto industry is also facing pressure to invest in new technologies. Companies such as BMW, Volkswagen and Continental have announced layoffs, and Volkswagen has cut dividends. Earlier, Volkswagen lost 2.4 billion EUR in the second quarter as the outbreak led to the closure of factories and dealers.

German car sales fell 1/5 in august, erasing the progress made last month and dashing hopes of a rapid recovery in Europe's largest economy. VDA, a German car lobby, expects German car production to fall 25 per cent this year, falling to its lowest level since 1975 in July.

Markus Soeder, governor of the German state of Bavaria and chairman of the CSU, believes that at present, whether the government should subsidize the automobile industry through the establishment of a special fund or through incentives for individual products remains to be discussed, "but it is clear that we must take measures to protect jobs in the automobile industry."

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