New scrapping premium: Wissing denies

On Twitter, Federal Transport Minister Volker Wissing (FDP) denies reports of a higher purchase premium for electric cars and a scrappage premium for combustion engines.

On Tuesday evening, May 9th, Federal Transport Minister Volker Wissing (FDP) denied reports that he was planning a scrappage bonus for combustion engines and that the environmental bonus for electric cars and plug-in hybrids should be increased and extended. "I neither want a scrapping premium nor a higher purchase premium for electric vehicles. The switch to climate-neutral mobility must succeed through market-based incentives," Wissing tweeted on Tuesday, May 9, at 5:47 p.m.

The "Handelsblatt" reported on Monday morning, May 9th, that Wissing is planning to significantly increase the purchase premiums for electric cars and plug-in hybrids and to pay them out longer than previously planned by the coalition. So far, the subsidy for plug-in hybrids should end at the turn of the year 2022/2023. The grants for electric cars should be paid by 2025 . That's what the coalition agreement says.

But the transport minister is under pressure: Last year, the transport sector "missed its climate targets by three million tons of CO2 despite the pandemic, and this year alone it has to save another six million tons," writes the Handelsblatt.

More than 25% discount on electric cars

According to reports, the FDP Minister of Transport wants to solve the problem with a lot of money: Electric cars and plug-in hybrids should therefore be funded much longer and much more than before. According to the plans, the purchase of electric and fuel cell cars would be state-supported until 2027. Instead of the previous 6,000 euros, buyers for cars up to a list price of 40,000 euros would receive 10,800 euros, plus the manufacturer's subsidy of 3,000 euros. Up to a purchase price of 60,000 euros, there should be a premium of 8,400 instead of 5,000 euros in the future.

New scrappage bonus from 2023

From the second half of next year, according to the reports, the environmental bonus should also be linked to one condition: According to the report, buyers would then have to "scrape a combustion engine car that is at least eleven years old in order to still receive the full subsidy The value of the scrapping premium could accordingly be around 1,500 euros. Both premiums should decrease from 2025," according to the Handelsblatt.

Premiums could cost over 70 billion euros

According to the expert opinion, Wissing's plans for the electric car premium could cost "up to 73 billion euros". The budget of the Federal Ministry of Transport currently includes 5.9 billion euros for the promotion of electric cars and plug-in hybrids.


On Tuesday evening, Volker Wissing denied reports from the same day that he was planning an increased and extended purchase premium for electric vehicles and a scrapping premium for combustion engines. It is not clear whether the denial also includes plug-in hybrids. The FDP politician argues with free market incentives.


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