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Finance

Posted By Global Banking and Finance Review

Posted on January 16, 2025

Factbox-German parties' car policies in February national election

(Reuters) - Voters in Germany, Europe's biggest economy, go to the polls on Feb. 23. With the country's auto industry in turmoil, here is what the major parties are saying in their manifestos on cars and the auto industry:

CDU/CSU

Topline: "Yes to cars: keep the automotive industry’s position as a leading industry."

The conservative Christian Democrats, running with Bavarian sister party CSU, want to reverse the 2035 ban on fossil fuel-emitting cars. Framing individual mobility as a matter of personal freedom, the party rejects what it calls "anti-car" policies like a speed limit on Germany’s motorway and banning cars in city centres.

Carbon emissions targets which could result in heavy fines for non-compliance must be reviewed and fines prevented, they said.

The party supports expanding EV charging infrastructure but also stands for “technological openness”, including towards e-fuels, though it does not specify whether these should be used for passenger cars or other forms of transport.

AFD

Topline: "Let the market decide."

The far-right Alternative for Germany (AfD) also supports withdrawing the 2035 phase-out off fossil fuel-emitting cars, wanting to safeguard production of combustion engine cars as long as possible to protect jobs.

The party wants to end public funding for EV charging infrastructure and let the market, not the law, decide on the appropriate technology for cars.

All car types should be given equal tax relief policies, the party’s manifesto said.

SPD

Topline: "Germany is a car country. The future of cars lies in electromobility."

The centre-left Social Democrats (SPD) propose tax reductions for buying or leasing EVs, expansion of charging stations and a cap on transmission network fees to make charging more affordable.

The party also opposes fining carmakers for failing to meet the EU’s emissions targets, saying carmakers need the money for EV development.

Greens

Topline: "We will ensure that access to electric vehicles makes travel more comfortable and cars more affordable."

The Greens have a stricter approach to ensuring carmakers commit to EVs. They stand by the 2035 fossil fuel car ban and think carmakers should be fined for not meeting CO2 targets but could be given more time to pay, with the funds used for European initiatives supporting the EV industry.

They propose research programmes for software and battery development and building up production capacity for critical technologies like semiconductors and batteries.

Reminiscent of the U.S.’ Inflation Reduction Act, the party says the state should provide support for consumers buying EVs mostly produced in Europe and give tax incentives to people on lower incomes for EV charging. It also supports EU tariffs on China-made EVs.

(Reporting by Victoria Waldersee, Andrey Sychev; Editing by Christina Fincher)

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