Electric-car subsidies can't last forever - Merkel

Published Sep 27, 2018

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Berlin, Germany - Subsidies to help persuade

Germans to buy electric vehicles have helped boost demand but

cannot go on forever, Chancellor Angela Merkel said on Thursday.

Germany wants to increase electric car sales, especially in

the wake of a diesel emissions cheating scandal that has

engulfed the auto industry in the last three years. A  €1 billion (R16.5 billion) subsidy scheme helped more

than double sales in 2017.

"Now there is talk about extending incentives. But this

cannot be a permanent subsidy," Merkel told an e-mobility event,

reiterating that Germany would miss its target of having a million electric vehicles on the road by 2020 by two years.

She also repeated her call for European countries to develop

battery cells. Currently the industry sources them from Asian

manufacturers.

"I am not sure if it is a good thing if we don't know what

happens in these cells," Merkel said, saying she was uncertain about relying on China. "Therefore I will try to push for a

European development... Germany is ready to take part,

Reuters

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