France makes EVs and plug-in hybrids the basis of a $ 9 billion program

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French government implements $ 8 billion ($ 8.8 billion) bailout to help auto industry recover from coronavirus pandemic, and electric cars will be a big part.

The help package, as reported by Automotive News Europe, includes more generous incentives for electric cars and plug-in hybrids, as well as a vehicle scrapping program designed to get the oldest and most polluting cars off the road.

Speaking Tuesday at a Valeo auto parts plant in northern France, President Emmanuel Macron said he wants France to be the world’s largest producer of electric cars. He called on automakers to repatriate production and commit to developing new models nationwide.

To help create demand for more electric cars, Macron said the government would increase incentives to buy electric vehicles to 7,000 euros ($ 7,700) for cars costing up to 45,000 euros (49,000 $), between June 1 and December 31. Companies are entitled to 5,000 euros ($ 5,500). Payment.

France will also add an incentive to purchase 2,000 euros ($ 2,200) for rechargeable hybrids, provided they have at least 50 kilometers (31 miles) of electric range, and cost no more than 50,000 euros ( $ 55,000), and the government will double a trade-in premium for older internal combustion cars.

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The income requirements for this program have been relaxed, so 75% of French households are eligible, said Macron. The increased premiums will be available on June 1 and will last until 200,000 cars are sold.

Neighboring Germany has increased incentives for electric cars for 2020, and sales have increased at the start of the year, showing that more generous incentives can have an impact.

These incentive programs could help make the European fleet cleaner; Tighter EU emissions regulations have so far not helped, as the transition to SUVs has gotten in the way.

However, hefty fines are still possible for automakers who fail to meet emission targets.

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