Wednesday, May 6, 2020

Car 'Bonus' Money, Gone?

The Merkel crew met up with several Premier-Presidents (state governors) yesterday.  A number of topics were discussed, but the idea for a 'cash-for-clunkers' type program was the big thing on the table.

What the German car companies, and at least three Premier-Presidents wanted....to jump-start the car industry, and save jobs....was a bonus deal.

On the table?  Two amounts.  For a older gas/diesel car.....buying a new gas/diesel car....3,000 Euro to each person buying a new German-made car.  The second amount?  If you bought a hydrogen, hybrid, or E-car, 7,000 Euro. 

Lot of talk, and finally at the end....the Merkel crew said that they'd meet again in June, and talk more. 

Negative feeling?  The Environmental Minister (SPD), appears to have taken the position that only the second option (hybrid, hydrogen, E-Car) ought to be on the table. 

The problem here with this logic?  Hydrogen offerings are slim to none.  Hybrids are generally around but out of a hundred Germans who be interested in the 7,000 Euro free-money deal.....there might be ten to twenty who'd drift over to chat on hybrid cars.  E-cars?  Once you've done the research, and looked at the options....the 7,000 Euro won't be near enough for the top brands that are on the market. 

The trouble with the current situation is that the German economy is geared toward car production and sales.  If it's not performing.....you got a sagging economy.  By June, the economical situation will demand some type of bonus deal to exist.  It's just a matter of waiting for bigger problems to solve your dilemma.

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