Monday, May 25, 2020

The German Car Stimulus Package

So a draft is being prepared, and this is how Germany will work a stimulus for buying a new car (made by a German company of course).

The car has to emit NO more than 140 grams of C02 for each km, to qualify as a 'clean' car.

How much of a problem is this?  The majority of German-made cars (on average) produce 150 grams of C02 per km.....so they would NOT qualify for the stimulus money.

I know....you are grinning over this, and it's a bit amusing.

E-cars could meet this easily.  Hybrids could meet this easily.  Virtually all SUVs would fail to meet this goal.  The VW Tiguan?  It would fail (it produces 142 grams).  The Ford Kuga?  It would meet the numbers.

So this is a wasted effort?  I would qualify the deal this way....if you wanted an E-car or hybrid....this is perfect for you.  But out of a thousand Germans, there's marginally a hundred who will go and talk to the dealer and get the info.....with perhaps a quarter of the hundred (starting with a thousand) willing to make the deal. 

As for the regular people with zero interest in hybrid or E-cars?  It leads you down to a very marginal path, where it's a joke.  Germans don't typically shop by grams of C02 for each km.....it's the total package that matters to them. 

I won't say it's a doomed failure, but six months into this....if they don't modify the idea, most dealers will shake their heads and just say it was a nice screw-job on them and the car-makers. 

On the positive side?  Of the billion-odd Euro put up for this program, probably half of the money will still be there six months into this (if it passes).  On the negative side?  It's a disaster for jobs at Opel, BMW, Ford, Mercedes, Audi, and VW. 

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