2023 Author: Eric Donovan | [email protected]. Last modified: 2023-08-25 09:36
The German car manufacturers are against retrospectively contributing to the cost of the scrapping premium. The Association of the Automotive Industry particularly referred to the losses of medium-sized suppliers, which have not yet been balanced.
The German car manufacturers do not want to contribute retrospectively to the state expenditure for the scrapping bonus. The premium “stabilized domestic demand in the worst year of the crisis in 2009 and thus secured employment,” the Association of the Automotive Industry (VDA) said on Tuesday. Politicians from the CDU and FDP had taken the carmaker's significantly improved interim balance sheets as an opportunity to demand additional cost sharing in the state premium.
Politicians for participation
In the “Bild” newspaper, the CDU member of the Bundestag and budget politician Alexander Funk called on the federal government to make proposals “how fair participation by the entire industry could look”. "In view of the gushing profits, the auto industry should share in the costs of the scrapping bonus," demanded Funk.
The FDP member of the Bundestag and chairman of the finance committee, Daniel Volk, also spoke out in favor of assuming the costs: "It is time that the industry took over part of it."
Balanced by sales tax revenue
The VDA stated that for the state, the expenditure on the premium was largely offset by higher VAT revenues and lower burdens in the social budget. There is also “worldwide agreement that the federal government reacted appropriately to the financial crisis”. This should “not be talked to in the usual summer theater”.
The VDA emphasized that many companies, especially small and medium-sized suppliers, would not have compensated for the sales and earnings slumps of the previous year. The domestic car market is still in weak shape.
Reithofer does not consider payments to be justified
BMW boss Norbert Reithofer said at the presentation of the half-year figures on this topic: “We all know that the BMW Group has never asked for a scrapping bonus and has not benefited much from it. We therefore consider payments beyond taxes to be justified."
The scrapping premium was decided in early 2009. The then ruling coalition of CDU and SPD had provided a total of five billion euros to promote the purchase of new cars and to support the auto industry during the economic crisis. (dpa)
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