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German policymakers, industry experts, environmental NGOs and unions were split over a proposal to support the country鈥檚 ailing car industry with a new 鈥榗ash for clunkers鈥� scheme, ahead of an industry crisis summit convened by the economy ministry. Members of chancellor Olaf Scholz鈥檚 Social Democrats (SPD) argued in a that people who trade in their old combustion engine car against a new electric model should receive a bonus payment of 6,000 euros, while drivers buying a used electric car should get a subsidy of 3,000 euros. To boost faltering electric car sales, the paper also suggested subsidies for electric car leasing for people with low or medium incomes, as well as support for private charging boxes, storage units and charging points.

Green economy minister Robert Habeck was scheduled to discuss the industry crisis with representatives of the country's carmakers, sector association VDA and the metalworkers鈥� union (IG Metall) on Monday (23 September). Officials said last week that the government was weighing options to counter the continuing weakness in electric car sales, which collapsed after the government axed purchasing subsidies last year. VW, which was hit particularly hard by the sales slump, recently terminated a job security agreement with unions in Germany that has been in place for decades, making factory closures and redundancies a possibility.

The metalworkers鈥� union said new subsidies would help carmakers, suppliers, and secure jobs, while also boosting the country鈥檚 economy. Environmental NGO Greenpeace called for a 鈥減remium for small, economical e-cars up to a maximum of 30,000 euros鈥� financed by a new registration tax for heavy combustion vehicles, . The Climate Alliance Germany, an alliance of around 150 organisations, called for a 鈥渟ocially staggered purchase premium鈥�.

Leading representatives of the opposition Christian Democrats (CDU) argued that state support should not be limited to electric cars, and called for postponing the tightening of the EU鈥檚 car emission limits. 鈥淲e must remain open to all technologies instead of betting on a single form of propulsion,鈥� Saxony state premier Michael Kretschmer tabloid Bild. Lukas K枚hler, a member of the Free Democrats (FDP), who are in a government coalition with the Greens and Social Democrats, warned the car summit 鈥渕ust not turn into a subsidy summit,鈥� but should instead aim to improve framework conditions for industry in general.

Car industry expert Ferdinand Dudenh枚ffer that the tight government budget meant that generous support payments were unrealistic. He also said that the discussion about new support payments was likely to put an additional break on sales, as consumers adopt a 鈥渨ait-and-see鈥� attitude.