Overview

• Federal Environment Minister Carsten Schneider said the government has secured €3 billion over three years to stimulate domestic electric-vehicle demand, with a focus on low-income buyers.
• The pledge came during a visit to VW’s Zwickau plant by Schneider, Saxony’s Minister-President Michael Kretschmer and Economics Minister Dirk Panter, where workers and suppliers demonstrated over job security.
• VW’s Zwickau site faces the prospect of a significant production downsizing, and local discussions include repurposing parts of the plant for refurbishing or dismantling used vehicles.
• Recent federal auto summit decisions include technology openness, an EV tax exemption extended to 2035 and social purchase incentives intended to lift mass-market demand.
• State leaders and experts warn that high energy prices, wage levels and falling capacity utilization threaten competitiveness in Saxony’s auto cluster, which employs about 95,000 people.