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German Leader Proposes Ten-Point Plan to Boost Auto Industry
Markus Söder, the leader of the Christian Social Union (CSU) and Bavarian Minister-President, has unveiled a ten-point plan aimed at supporting the struggling German automotive industry. The plan, which was announced ahead of the International Automobile Show IAA Mobility in Munich, seeks to preserve jobs and Germany's competitiveness in the sector.
The plan includes several key measures. Söder aims to halt the EU-wide ban on new cars with internal combustion engines by 2035, suspend CO2 fines, revise the current CO2 reduction targets, and allow no driving bans for vehicles with internal combustion engines.
Söder also emphasizes the importance of technological openness rather than forcing the transition to electric vehicles, industrial electricity pricing concepts with tax relief, the promotion of autonomous driving, the expansion of charging infrastructure (including for buses), and state support for suppliers.
Ferdinand Dudenhöffer, an automotive expert, finds Söder's plan contradictory regarding the internal combustion engine. However, he supports the expansion of charging infrastructure, particularly for buses, and the German automakers' expected delight at the prospect of building electric buses.
Industry heavyweights such as Oliver Blume, CEO of Volkswagen, and Ola Källenius, CEO of Mercedes-Benz, have welcomed the upcoming automotive summit invited by the federal government. Källenius emphasizes the importance of the current point in the industry's future and the preservation of jobs and Germany's competitiveness.
The automotive industry is currently facing a sales slump, intense competition from China, and the shift to e-mobility, in addition to the trade dispute with the USA. Friedrich Merz (CDU) has announced a dialogue with German automakers and their suppliers on the future of the automotive industry.
Dudenhöffer also supports Söder's call for a more affordable driving license but questions its implementation. The ten-point plan also includes the reduction of driving license costs.
In response to Söder's demand, Dudenhöffer sees the expansion of charging infrastructure, particularly for buses, as "more of a grab bag than an action plan." He suggests that municipal utilities will likely build the charging stations.
The ten-point plan also calls for the strengthening of the supply industry. As the car industry is a matter of fate for the German economy, this move is intended to support the struggling industry and ensure its future.
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