Germany has hit upon a plan that for the moment is keeping domestic sales afloat by giving away 2,500 Euros or $3,143 to new car buyers that trade in an old car. The government has said that this will not only give the German auto industry a boost in sales but will also put more fuel-efficient cars on the road while removing older more polluting cars.
Germany’s plan reflects a choice other countries face as well. As global car sales and exports plummet around the world each country has to decide on its own strategy to keep their auto manufacturers afloat. But this raises a question: is it better to support traditional car companies that produce cars based on fossil fuel sources or give support to up-and-coming electric and hydrogen powered car companies. Also, are these new incentives aimed to just keep the main German carmakers in business or will they stipulate that their main automakers BMW and Daimler begin producing electric cars to meet their goal of 1 million electric cars by 2020?
President Obama recently announced 2.4 billion USD in funding for electric and plug-in hybrid vehicle and battery research, development, and manufacturing while Indian auto manufacturer Tata, the company that just unveiled the cheapest car in the world the Nano, has also just announced the future release of its first electric car, the Indica, in Norway later this year. Will the Indica make as big of a splash as the Nano? Will the US be able to play catch up after it has stumbled so much with Detroit’s mistakes? Would huge incentives like those Germany is giving help to lure buyers towards electric cars? First it seems that many issues like batteries and recharging stations need to be settled.
In the end the question that no one seems to be asking, is trying to save your old automakers that are focused on fossil fuels or trying to convert your old auto industry to all electric cars really any different? When you boil it down both are ultimately using mainly fossil fuels (when you consider that most of the global energy supply is from coal or gas) and not until we rely mainly on renewable energy sources will we truly have no emission cars. Until then riding your bike will remain the greenest transport mode.
>>You might also be interested in reading:
Will Tata Indica EV Be Europe’s First Serious Electric Car?
Germany Wants 1 Million Electric Cars on the Road by 2020
Photo Credit: davidChief via Flickr under a Creative Commons license
For german cars,it’s good to know the sales are increasing most especially for the BMW models…Love the one in the picture, the headlight looks nice and appearances seemed sophisticated….