As an unabashed auto enthusiast, I have a soft spot for European cars. I don’t own one – primarily because they are beyond my budget. The German government is finding that the even higher cost of German EVs is a growing threat to achieving the country’s transportation electrification goal. Clean Energy Wire reported:
“The German government is aiming for 15 million electric cars on roads by 2030, but industry insiders say orders for EVs have dropped since the end of 2022, business daily Handelsblatt reported. ‘With the current status quo, 15 million e-cars by 2030 will not be possible,’ said Kurt Sigl, head of the German Electric Mobility Federation (BEM). ‘German manufacturers have no affordable cars that customers want.’ Subsidies for electric vehicle production have also been severely cut this year, impacting producer’s margins and their willingness to move away from combustion engine vehicles. Additionally, high interest rates on loans make leasing and financing obstacles for many people.”
This is an example of the delicate balance between national environmental and economic policy, corporate strategy, product pricing, worker pay and consumer sentiment that is necessary for a successfully managing climate risks/opportunities. And keep in mind – slower uptake of EVs in Germany may impact assumptions embedded in corporate goals/targets or even contractual requirements – even for US-based companies. Kermit the Frog certainly said it best: “It ain’t easy being green.”
