Discussion on Expanding Electric Vehicles in Eastern Europe - Anxiety among Countries
In the heart of Germany, the automotive industry in Saxony is gearing up for a significant shift towards electromobility. This transition, which is particularly crucial in eastern Germany where tens of thousands of jobs depend on it, has become a topic of intense debate.
The IG Metall union, recognising the importance of this shift, recently held a conference in Chemnitz to discuss the expansion of electromobility and its impact on the region. The event brought together trade unionists, politicians, works councils, and scientists, aiming to navigate the challenges and opportunities that lie ahead.
One of the key issues under discussion is the EU's decision to ban the registration of new cars with gasoline or diesel engines from 2035. This move, aimed at making all new vehicles emission-free, has put the industry under pressure. However, it's important to note that no specific companies have yet committed to exclusively producing zero-CO2 vehicles by that year. Ongoing discussions with the EU commission continue regarding the transition to electrification.
The planned ban has sparked debate, with several union politicians and EPP leader Manfred Weber calling for the decision to be softened or withdrawn altogether. However, others, such as Audi CEO Gernot Döllner, describe the debate about the internal combustion engine as "counterproductive" and emphasize the advantages of the electric car for reducing CO2 emissions.
One proposed solution to make electric cars more affordable is social leasing, an approach successfully tested in France. Dirk Panter, the Minister of Economics in Saxony, mentioned this as an example of attractive leasing offers that could help make the switch to electric vehicles more accessible.
Competitive energy prices and the faster expansion of power grids and charging infrastructure are also crucial, according to Panter. He emphasized the importance of maintaining investments in electromobility, such as at the site in Zwickau, a significant contributor to Saxony's production of 40 percent of all fully electric cars produced in Germany.
However, the transition is not without its challenges. Jan Otto, the IG Metall regional leader, warned of a "second de-industrialization in the east" and demanded binding commitments from companies for locations and employment. He underscored the need for planning security for employees and companies in the industry.
Panter, too, believes in the phase-out of the internal combustion engine but stresses the need for consistency and realism in the transformation. He warned against dependence on Chinese manufacturers and called for a balanced approach that supports both the industry and the environment.
It's worth noting that the EU's plan allows already registered cars to continue to be used and sold as used vehicles. This provides some assurance to those concerned about the immediate impact on the industry.
As the industry navigates this transition, it's clear that collaboration, innovation, and a balanced approach will be key to ensuring a smooth and successful transition to electromobility in eastern Germany.
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