Saxony's Minister President criticizes the end of the electric car purchase premium

Saxony's Minister President Michael Kretschmer believes that citizens' and companies' trust in politics has been damaged following the sudden end of the purchase premium for electric cars. "Politics thrives on trust," the CDU politician told the German Press Agency. The engine in the industry is also stuttering because, among other things, the high energy prices are making the advantages of e-mobility obsolete, according to Kretschmer. In the CDU politician's view, it is wrong to set absolute targets and for the state to make decisions about technologies.

"Openness to technology means competition for the best ideas and the lowest costs. This competition of ideas has made Germany strong. We need it in mobility, in energy policy and in digitalization," said Kretschmer.

From now on, there will no longer be a state bonus for the purchase of new electric cars. The background to this is the ruling of the Federal Constitutional Court on the federal debt brake. As part of their austerity program, the coalition leaders of the SPD, Greens and FDP agreed a few days ago to phase out the state subsidy in the near future.

However, Kretschmer described it as a "huge advantage" that Volkswagen has created a leading e-mobility plant in Zwickau. This is a unique selling point for Saxony, he said, and all factories refer to the plant in Zwickau. This is indispensable for the future. "Even if it's a bit difficult right now." Kretschmer was optimistic that Volkswagen would master the weakening demand for e-cars.

The situation is also problematic for many medium-sized supplier companies due to the increase in tolls and the planned CO2 tax, among other things. This is a clear competitive disadvantage because it increases transport costs. "Small companies in particular, for example in the Ore Mountains, are affected by this."

Due to weakening demand for electric cars, Volkswagen plans to continue job cuts in Saxony in 2024. To this end, the contracts of almost 500 temporary employees are not to be extended. The contracts of 269 employees have already expired this year. More than 10,000 people work at the Zwickau site.