German Car Dealerships Decry New E‑Car Subsidy as "Disaster", Warn 20 % Sales Slump.
Economy / Finance

German Car Dealerships Decry New E‑Car Subsidy as “Disaster”, Warn 20 % Sales Slump.

The German Association of Automotive Dealerships (VAD) has blasted the new electric‑car incentive scheme.

Burgkholder Weller, the VAD president, told the German editorial network that the rollout has been “disorganized” and that it has shaken customers and slowed business. He said the scheme is a disaster and that the subsidy ends up doing more harm than good. “The money could have gone straight into kindergartens and schools instead of this costly mess” Weller added.

The federal government announced the subsidies in January. They apply retroactively to new registrations for pure electric vehicles, plug‑in hybrids and range‑extender models. However, the online portal that dealers and buyers will use to submit applications won’t be available until May. In the meantime, VAD has warned that the “procedure is too complex and many details remain unclear”.

The VAD claims that electric cars will succeed regardless of the incentive scheme and considers the subsidy fundamentally flawed. Instead of subsidies, they argue, the priority for electric mobility should be cheaper electricity and transparent pricing at charging stations.