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BMW sceptical ahead of German automotive sector crisis summit

Edu Abade by Edu Abade
November 15, 2024
in Business, News
Reading Time: 1 min read
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BMW sceptical ahead of German automotive sector crisis summit
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BMW has come out against short-term state-funded boosts to Germany’s ailing automotive sector and called instead for long-term measures to increase consumer take-up of electric vehicles.

“Germany’s automotive sector does not need a short-term, market-distorting flash in the pan,” the Munich-based carmaker said on Monday ahead of a summit on the sector scheduled for later in the day.

Among the measures backed by BMW are full nationwide coverage for charge points, both in public areas and at homes, as well as cheap electric power.

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“If the costs for a kilometre driven using electricity are higher than with petrol or diesel, a key incentive for electric vehicles is lacking for many customers,” it said.

German Economy Minister Robert Habeck and the automotive sector are to discuss the crisis facing the sector in a videoconference on Monday afternoon.

Volkswagen, BMW and Mercedes executives will be joined by representatives from the German Association of the Automotive Industry (VDA) and the powerful IG Metall trade union.

There have been calls for measures to boost demand for electric cars, in line with government policy to phase out the combustion engine, but whether specific decisions will be taken at the summit is not clear.

Tags: BMWelectric vehiclesGerman automotive sector
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