German automotive suppliers are facing increasing strain, prompting calls for government intervention to ensure their stability during a period of significant industry transition. Christiane Benner, leader of the IG Metall trade union, has voiced concern regarding the liquidity and equity challenges confronting these crucial businesses, particularly as they adapt to the shift towards electric vehicle production.
Benner emphasized the vital role of batteries within the automotive sector, advocating for governmental support to facilitate battery production within Germany. She also stressed the need to broaden the reach of initiatives like the planned Germany Fund, ensuring that medium-sized automotive suppliers also benefit from available funding. Many companies, she noted, are currently struggling to secure financing despite possessing viable and future-oriented business concepts.
Beyond supplier support, Benner urged a substantial expansion of state aid for electric vehicle adoption. She argued that current incentives, largely focused on company car fleets, should be extended to private households and made accessible to individuals with lower incomes. Options being considered include the reinstatement of purchase premiums – previously discontinued in 2023 – and the possibility of tax deductibility for private vehicle purchases. Furthermore, such regulations should encompass leasing payments and the acquisition of used electric vehicles.
The trade union leader also reiterated the call for an immediate extension of the exemption from vehicle taxes for fully electric vehicles. The current regulation is due to expire at the end of the year and should, according to Benner, be extended without delay until 2035. This position aligns with a previous joint statement issued by IG Metall and the German Automotive Industry Association (VDA) during the Munich International Motor Show (IAA) in September, which also highlighted the need for improved charging infrastructure.