The World From Berlin 'Electric Cars Are Far Too Expensive'.(Spiegel).The electric car fits neatly into the German government's plan to leave the dirty world of fossil fuels behind it by mid-century. Just over a year ago, Chancellor Angela Merkel set the bold goal of increasing the number of electric cars in the country to 1 million by 2020. But today there are only 4,600 of them driving on German roads, a mere 0.01 percent of all registered cars, despite years of research. So much for a high-voltage success story. German drivers don't want electric cars, and it's not hard to understand why not. Part of the problem is that most e-cars can't travel further than 100 kilometers (62 miles) before needing a recharge.
Prices, too, can run as much as €10,000 ($13,000) higher for an e-car than one with a traditional internal combustion engine. On Monday, Merkel hosted a meeting with the heads of Germany's major automobile manufacturers, including BMW, VW, Porsche and Daimler, to talk about e-cars. She admitted that, as of today, it "wouldn't be easy" to meet the government's goal and that 600,000 electric cars by 2020 is more likely. The chancellor noted that as the technology advances, those numbers might quickly change for the better.
The country has already pumped €500 million in state aid into the promotion of electromobility as part of its fiscal stimulus measures during the global economic crisis. By 2013, Berlin is expected to provide an additional billion euros in funding for research and development projects. However, the chancellor has refused to offer incentives or tax breaks to consumers to fuel spending on e-cars, saying it won't happen during the current government's term. With fiscal belt-tightening and the euro bailout, there's greater competition today for funding. Meanwhile, Merkel's transportation minister, Peter Ramsauer, and Economics Minister Philipp Rösler have refused to back buyer incentive programs, arguing that road repair and construction should be given a priority.
Of the CEOs who came to the Chancellery, Daimler CEO Dieter Zetsche was the only one to turn up in an electric car. Was it symbolic of the lack of enthusiasm German carmakers have for battery-operated vehicles? Zetsche told German public broadcaster ZDF that Berlin should be happy if it succeeds in getting 500,000 to 600,000 e-cars on the road by the end of the decade. Like other auto sector executives, he is also calling for purchasing incentives like those sponsored by the French and American governments.Read the full story here.
