Tag Archives: Subsidies

News

The French government cut subsidies to 4,000 euros

In September 2023, in order to protect domestic vehicle manufacturers, the French government considered a new subsidy decree on subsidizing the purchase of new electric cars. Citizens with low incomes would have subsidies of up to 7,000 euros, while for others it would be 5,000 euros. However, the French government made a new decision that will cut subsidies to 4,000 euros for those with high incomes.

The original decision was changed because it was estimated that the budget of 1.5 billion euros would be insufficient. The new decision cut the subsidy for higher-income buyers by 20 percent to stay within budget and increase the number of electric vehicles on the road. Meanwhile, subsidies for the purchase of electric company cars are also being cut, as are bonuses for the purchase of new cars with internal combustion engines to replace older, more polluting vehicles.

Also, the government halted a new program to subsidize the purchase of leased electric cars for low-income people until the end of the year, after demand far exceeded initial plans. Bonuses for electric vehicles can vary from 2,250 to 9,000 euros, depending on the buyer’s income.

Source: Reuters

News

930 million euros in subsidies for EV buyers in Italy

The Italian government has announced that it intends to use subsidies to encourage the purchase of electric cars, but also to help owners of cars with the Euro 2 standard to replace them with electric ones. This program includes a financial plan of 930 million euros (13,750 euros per car), which is a record amount of subsidies in Europe. The decision is not yet official, so the current demand for EVs dropped, which forced some manufacturers like Stellantis to start laying off employees.

Stellantis announced that due to reduced demand for EVs, it was forced to lay off more than 2,000 workers at the Mirafiori plant. This is not the first time that Stellantis makes such a decision, as a similar situation occurred at the end of last year.

The union is concerned about the decision to lay off a large number of workers and has asked Stellantis management for a meeting as soon as possible. “The layoffs will apply from February 12 to March 3 and will affect 1,250 workers who make the electric Fiat 500 and another 1,000 workers who work on the production of Maserati cars,” a company spokesman said.

The current global financial situation is not good, so saving every euro is important. As a result, buyers are holding off on purchasing electric vehicles while waiting for the government to implement the announced incentives.

Source: Stellantis