According to Reuters news agency , on June 1, German Economy Minister Peter Altmaier said the agency is proposing a support package worth 5 billion EUR (equivalent to 5.6 billion USD) to boost cell sales. after the effects of the Covid-19 epidemic. The subsidy package will be for buyers of electric vehicles and traditional internal combustion engines priced below EUR 77,350, and will be valid through the end of 2020. 

However, this proposal is still facing many opposition. SPD head Norbert Walter-Borjans said supporting the car industry is a good decision, but should not include internal combustion cars. Many policymakers are also opposed to supporting premium for internal combustion cars, saying that this decision is against the goal of protecting the environment and reducing emissions.

According to the latest statistics of the Ifo Institute, the sales of the automobile industry in Germany in the first months of 2020 has been at its lowest level since 1991. Automobile consumption worldwide has also decreased dramatically, as factories and showrooms are forced to close, subject to quarantine orders in many countries.

Meanwhile, the French government is also considering a support package worth up to EUR 8 billion to rescue the automotive industry, especially the electric vehicle sector. In addition, the French government has approved a 5 billion EUR credit package for carmaker Renault, which the French government owns a 15% stake. Carmakers who want to receive support from the French government are forced to move their production operations back to their home countries. 

Along with tourism and aerospace, the automotive industry is one of the three focal points of the French government’s economic recovery plan after the Covid-19 pandemic.