ROUNDUP 2: Habeck wants to pull the plug on the promotion of plug-in hybrid cars

(new: update with Rehlinger (SPD) in the 6th paragraph.)

BERLIN (dpa-AFX) – Buyers of plug-in hybrid cars are threatened with a rapid end to state subsidies. Economics Minister Robert Habeck (Greens) wants to end the funding at the end of 2022. That is earlier than planned – and contrary to what was stated in the coalition agreement between the SPD, the Greens and the FDP. That is why a coalition dispute is now looming. SPD, Greens and FDP had carried out a reform of funding. In the coalition agreement, however, there is no mention of an end to subsidies for plug-in hybrids.

It states that the funding for electric vehicles and plug-in hybrids should be fundamentally reformed in such a way that from January 1, 2023 it will only be issued for vehicles that have a proven positive climate protection effect – that of an electric proportion of driving and a minimum electric range be defined.

A subsidy for plug-in hybrid vehicles depending on the electric driving performance would have led to “disproportionately high costs” and was therefore rejected – according to a letter from Michael Kellner, Parliamentary State Secretary in the Ministry of Economic Affairs, to members of the coalition. That is why the funding for plug-in hybrid vehicles should end on December 31, 2022.

Habeck told the Funke media group that future funding for e-cars should be more focused on climate protection: “In our opinion, plug-in hybrids are marketable and no longer need public funding.”

The FDP reacted with a cold. “In the coalition agreement, the traffic light parties agreed to continue the innovation bonus for plug-in hybrid vehicles as well,” said transport policy spokesman for the FDP parliamentary group, Bernd Reuther, on Thursday. “There is no reason to move away from this agreement now. Every vehicle that can be operated electrically makes a contribution to achieving the climate targets. We must make switching to such vehicles as attractive as possible and promote these vehicles accordingly.”

The deputy SPD chairwoman Anke Rehlinger told the “Handelsblatt” that hybrid engines are an important bridge to the automotive future. The agreements of the coalition agreement give the companies time and at the same time improve the climate balance by emphasizing the electrical portion of the mileage.

Strong criticism came from the car industry. “The considerations of phasing out funding for plug-in hybrids endangers the ramp-up of e-mobility in an already tense time and ignores the realities of life of consumers in Germany,” said the President of the Association of the Automotive Industry (VDA), Hildegard Muller.

The charging infrastructure for pure e-cars is still completely inadequate, Müller said. That’s why plug-in hybrids paved the way. There is no fear of range on long-distance journeys.

“It is long overdue to end the ecologically and economically absurd promotion of plug-in hybrids,” said Greenpeace traffic expert Marion Tiemann. Michael Müller-Görnert from the ecological traffic club VCD said that plug-in hybrids were mainly offered in the SUV segment. “Analysis shows that vehicles with a combined combustion engine and electric motor are mostly not driven electrically.” This eliminates the environmental benefit, i.e. the actual reason for the state subsidy. “The money is better spent if we invest it in the expansion of bus and train services and safe cycling and walking networks.”

In mid-2020, the previously valid purchase bonus (“environmental bonus”) was increased by an “innovation bonus”. The federal government doubled its subsidy, while the manufacturers’ price reductions remained unchanged. This led to a run on the multi-billion dollar funding. The number of new registrations of purely electric cars and plug-in hybrids rose significantly.

The aim of the traffic light coalition is for there to be at least 15 million fully electric cars by 2030. According to figures from the Federal Motor Transport Authority, there were around 618,000 purely electric vehicles as of January 1 – out of a total of 48.5 million cars.

Buyers of purely electrically operated electric vehicles will receive a subsidy of up to 9,000 euros including manufacturer price reductions until the end of the year. For plug-in hybrids, there are up to 6750 euros.

According to Habeck’s plans, there should also be less money from the state for pure electric cars in the future. The federal share should still be 4000 euros in 2023, and 3000 euros in 2024 and 2025. So far, the federal share is up to 6000 euros.

And something else is important for buyers: the premium should continue to be linked to the date of vehicle registration. Habeck rejected demands from the industry to link the funding to the time of purchase in view of the long delivery times: “The susceptibility to abuse is too high if the time of the conclusion of the contract counts and not the approval.” He thinks it would be helpful if the car manufacturers themselves compensated for the difference that could arise as a result of the longer delivery times.

So if Habeck prevails in the coalition and the state subsidy for plug-in hybrids expires at the end of 2022, many buyers who want a subsidy could get nothing – because their car was not delivered by the end of the year. Because buyers sometimes have to wait months for new vehicles.

VDA President Müller criticized: “It is not reasonable that a possible later delivery – also as a result of the developments caused by the war in Ukraine – has to take the risk of having to pay several thousand euros more. Many people will so deterred from getting into e-mobility.” Manufacturers also granted their share of the premium at the time of signing the contract./hoe/DP/men