Habeck invites industry and trade union to car summit
Representatives from politics, business and trade unions want to meet to give the automotive industry a positive outlook.
There is currently a lot of talk about the crisis at VW Passenger Cars. But other manufacturers have also had to accept declining profits. The share of cars with electric drives is declining in the major EU sales markets. In the picture: Mercedes EQA (test)
There have already been several car summits in the past, and the actual results have usually fallen far short of the attempt to present themselves in the media as caretakers. On September 23, Federal Economics Minister Robert Habeck is making another attempt and inviting the heads of car companies, suppliers, the car industry association and the IG Metall trade union to an exchange of views. The main topic there is likely to be how to create politically stable framework conditions.
There has already been a summit
The previous auto summit took place in November 2023. Following a ruling by the Federal Constitutional Court, the government had to think about a budget that suddenly lacked funds. There was broad agreement at this summit that electric cars needed to become cheaper and the charging infrastructure needed to be expanded more quickly. VDA President Hildegard Müller pleaded for planning security and for the long-term ban on the registration of new cars powered by petrol and diesel in the EU to be overturned. In December 2023, the purchase subsidy for electric cars was then suddenly withdrawn, including for private registrations.
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How big ...
The new car summit is taking place under completely different circumstances. The share of electric cars is declining on the major car markets in the EU. The industry is generally complaining about declining margins. In recent years, these have been at a record level for many manufacturers. The shortage of parts has made new cars a scarce commodity that is in high demand. A low supply and high customer interest meant sharply rising prices. At the moment, there is a certain reluctance on the part of consumers, and the discontinuation of state purchase subsidies for electric cars has left its mark on registration statistics, which have affected manufacturers to varying degrees. There is growing concern in the EU that the European car industry is entering troubled waters.
... is the crisis?
When there is much talk of a crisis, it should not be forgotten that some manufacturers have made a lot of money in recent years. In addition, there may be a reluctance to buy new cars in Germany at the moment. However, more new cars were sold in the EU in the first six months of this year than in the previous year. Despite all the complaints about the situation at VW, the Volkswagen Group reported a total profit of €17.9 billion after deducting taxes last year, which corresponds to an increase of €2.1 billion compared to 2022. The return per car at the core VW[ ]Passenger Cars brand may be comparatively low, but the Group as a whole is far from being a restructuring case that needs to be generously bailed out with taxpayers' money.
As expected, the participants at the upcoming auto summit have very different ideas. IG Metall is calling for jobs to be saved, while the car industry is demanding a new government incentive to promote the sale of electric cars. So far, the German government is only planning stronger tax incentives for battery-electric company cars. The FDP has already rejected further support from the tax pot. The SPD is considering promoting small and mid-range e-cars as in France.
VDA calls for relief
The VDA is calling for tangible relief for e-car owners. "Electromobility must offer a clear cost advantage in the overall balance sheet," states a VDA position paper, which was made available to dpa. In terms of overall costs, however, this is already the case today in many scenarios, and with a rising CO₂ price, the maintenance of a combustion engine will become even more expensive in comparison.
The VDA repeated old demands in this regard: The price of electricity at public charging points must fall, whether through more competition or fewer taxes and levies. The price of eFuels must also be reduced. There are no proposals as to how this could be financed. In addition, the planned review of fleet limits would have to be brought forward. The VDA is among those who vehemently oppose the end of the combustion engine in its current form in vehicles that will be registered in the EU for the first time after 2034. Regulation is "not underpinned by sufficient political measures and therefore cannot be achieved". A rapid improvement in the framework conditions is key to convincing consumers of the benefits of electric cars. Among other things, the expansion of the charging infrastructure has accelerated enormously in recent years.
Network of hydrogen filling stations
At the same time, the VDA argued that a better hydrogen refueling network is also required for the ramp-up of electromobility. This refers to vehicles that generate electricity from hydrogen in a fuel cell, which is then used to power the car via an electric motor. It remains unclear who the VDA is advocating in this case. Hydrogen plays virtually no role in passenger cars, and there is little to suggest that this will change in the foreseeable future.
BMW and Toyota want to offer an H2 series model from 2028 and are practically alone in the industry with this plan. There is also no tangible plan as to who should finance a nationwide hydrogen infrastructure in the EU. This would involve very high costs. An H2 filling station costs around 1.5 million euros, and the EU is currently a very long way from a nationwide supply. Hydrogen produced from renewable sources is also currently in short supply. Even in the transport sector, long the hope of H2 advocates, there are no signs of a change in this direction at the IAA Transportation in Hanover. Instead, the signs are pointing towards a switch to battery-electric drives. The obvious driver here is the overall cost.
(mfz)