Germany Earmarks Billion to Ease Electric Mobility Transition
The shift to electric vehicles will have wide-ranging effects on the German automotive industry, the largest in Europe, forcing change upon the many suppliers of parts for conventional combustion-driven cars. To compensate, the German government is allocating EUR 1 billion to help regions, companies and individual workers cope with the new automotive reality.
Following Germany’s annual “car summit” between top political leaders and industry, trade union and regional representatives, this “future fund” is now ready for launch.
“Our goal is for the German automotive industry to build the climate-friendly cars of the future, create new jobs and maintain value creation,” said German Finance Minister Scholz, who is also the Social Democrats’ lead candidate for chancellor in Germany’s national election in late September.
There are more than 800,000 direct automotive manufacturing jobs in Germany – four times as many as in France. Roughly one-third of the fund will go toward regional “transformation networks,” one-third to digitalization and one-third to help SMEs convert production to electric mobility needs. Some 70 automotive regions in the country will be eligible for assistance.