German automotive suppliers are facing increasing strain, prompting calls for government support to ensure stability during the industry’s transition to new technologies. Christiane Benner, leader of the IG Metall trade union, emphasized the need for assistance regarding liquidity and equity for these companies navigating the shift towards electric vehicle production.
Benner highlighted batteries as the “new engine” and advocated for targeted funding to bolster their production. She also urged that instruments such as the planned Germany Fund, a government initiative, be made accessible to medium-sized automotive suppliers, expressing concern that many are currently unable to secure financing despite innovative and future-oriented ideas.
Beyond supplier support, Benner called for a significant expansion of state-led incentives for electric vehicles. She argued that current support primarily focused on company car fleets needs to be broadened to encompass private households, particularly those with lower and middle incomes.
Suggestions for renewed incentives include reinstating the purchase premium abruptly discontinued in 2023 and exploring the possibility of tax deductibility for private vehicle purchases. Furthermore, any future framework should incorporate leasing rates and the acquisition of pre-owned electric vehicles.
Finally, Benner reiterated the urgency of extending the exemption from vehicle taxes for fully electric vehicles, a regulation currently set to expire at the end of the year. She proposed an immediate extension of this exemption until 2035, aligning with a previous joint statement from IG Metall and the German Association of the Automotive Industry (VDA) that also called for improvements to charging infrastructure.
