Warning: Dudenhoffer Warns of Potential "Time Bomb" in Electric Company Car Promotion
E-Service Vehicles Face Potential Time Bomb, Warns Dudenhöffer
Auto expert Ferdinand Dudenhoffer sees both benefits and pitfalls in the newly approved million-dollar depreciation options for electric company cars. While he acknowledges the positive impact on business, he warns of potential risks, likening it to a ticking time bomb.
The finance minister's depreciation model, according to Dudenhoffer, amounts to forfeited tax revenue. The perceived advantage of this approach is that it avoids the need for additional government debt to fund a green bonus for private electric car buyers. However, the money is still lost in the short term, Dudenhoffer points out.
Car manufacturers face a significant risk, too. In two years, the high-quality electric vehicles they are currently leasing en masse to companies could overwhelm the used car market, driving down prices. This could result in substantial losses for leasing companies due to overestimated residual values.
In an interview with "Der Spiegel," Dudenhoffer urged the federal government to also support private electric car buyers with a purchase premium. While the government's "Booster" immediate program focuses on promoting electric company cars, Dudenhoffer recommends a new eco-bonus to further stimulate the industry. He suggests a sum of 2,000 euros from the state would suffice.
Dudenhoffer acknowledges that German electric cars are attractive and Germany is back on the forefront of e-mobility. However, he cautions against overlooking broader concerns. Critics argue that the proposed tax breaks might not significantly boost the transition to electric vehicles, as they are seen as insufficient. Additionally, resistance from major German car manufacturers to fully transition to electric vehicles could hinder the long-term effectiveness of EV incentives.
These points, while not explicitly mentioned by Dudenhoffer, reflect broader concerns that could apply to the tax relief measures for electric vehicle purchases in Germany. Potential issues include the ineffectiveness of the policy, industry resistance, budgetary impact, and environmental impact.be sure to consider these factors when assessing the implications of this new incentive program.
[1] ntv.de[2] rog[3] Industrieunternehmen in Wettbewerb mit den Stars der E-Auto-Produktion, siegel.de[4] Spiegel.de, Money Talk, 2020-10-16, Perschke, Till. "E-Autos zur Selbstverständlichkeit machen."
In the context of Dudenhoffer's warnings about electric company car promotions, it would be prudent for policymakers to consider implementing vocational training programs for the workforce in the technology sector, aimed at meeting the demands of the emerging electric vehicle industry. This could help mitigate potential risks due to the oversupply of electric cars in the used car market and aid in the long-term success of the electric vehicle industry, even in the face of industry resistance.
Moreover, with the potential financial implications of the depreciation model for electric company cars, it may be beneficial for the government to explore alternative sources of funding for vocational training, such as partnerships with businesses or private organizations, to ensure the sustainability of the program. This joint effort could strengthen the community by fostering a skilled workforce and bolstering the growth of the electric vehicle business.
