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BMW CEO urging tax subsidies for electric vehicles in Germany to bolster sales

15 July 2012

Financial Times Deutschland. BMW CEO Norbert Reithofer is calling for tax subsidies in Germany to help meet the federal government’s target of having 1 million electric cars on the road in eight years.

“But last year, we sold just 2,000, including 100 at retail,” Reithofer said on Thursday at the “Handelsblatt” annual conference in Munich. Because of the high purchase prices for electric cars, there is a need for incentives...“for example, the tax law.”

...In Europe, the EU Commission wants to reduce CO2 emissions dramatically. But to reduce the CO2 emissions of the BMW fleet from today’s 148 grams to 100 grams would be "a huge challenge," said Reithofer. BMW will expand its range of hybrid cars and start at the end of 2013 with mass production of electric BMW i3.

July 15, 2012 in Brief | Permalink | Comments (8) | TrackBack (0)

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There are many ways to effectively promote the sales of electrified vehicles:

1) Progressively but more aggressively regulating maximum GHG/Km or per vehicle per year is an effective low cost promotion for electrified vehicles.

2) Lower registration fees based on GHG/Km/year would also help.

3) Lower purchase taxes for all electrified vehicles would be effective.

4) Direct subsidies based on GHG and/or liquid fuel consumption reduction is another solution.

5) Higher liquid fuel taxes, enough to fully compensate for the cost of all direct and indirect incentive programs.

“But last year, we sold just 2,000, including 100 at retail,” Reithofer said on Thursday at the “Handelsblatt” annual conference in Munich. Because of the high purchase prices for electric cars, there is a need for incentives...“for example, the tax law.”

We need better batterieslower (lower cost/benefit ratio), not more money wasted where there is a poor return (of overall benefits) on investment.

One car or one million cars at BMW prices is a very poor investment.

Yeah! You're so right. The purchase of a 3-D flatscreen TV with Dolby Surround for $8k would be a much more sound investment. Not to forget the newest Apple smart phone with all optional Apps included. And, while we're at it, add an outdoor swimming pool with an oil heating system for all year operation.

BMWi3 not good idea. Still there is no good options on the market exept Chevy Volt which just started in Europe. Europe needs more EREV options like Audi A1 e-tron.

Another issue regarding low electric car sales is that no one has yet provided a seamless solution. Drivers of gas-powered vehicles are used to having a very easy system of getting into their cars, driving whereever and however long they wish without hassle and without "battery anxiety." In addition to "battery anxiety", drivers with electric vehicles get tired of having to plug the car in (and unplug it) every evening.

The solution requires a car with range extender (like the Volt) that also has an inductive charger that sits on the garage floor and automatically charges the vehicle in the night.

@ citizen:
Do you know how gas guzzlers were started before the electric starter was invented in 1911 bei Charles Kettering? Most manufacturers (not all) included electric starters in their cars by 1920. Prior to that date (and also later), a car was started maually via a crank. And you have the nerve to complain about plugging a chord into a socket to charge a battery. You should be ashamed of yourself!
In 1956 - 57 and 58 I worked on a farm during summer vacation. I almost wrenched my intestines out getting that John Deere started by spinning the flywheel from hand. You don't seem to know what physical work is!

Of course, all EVs should be equipped with an effective auto-driver so that drivers and passengers could play video games or do some other pass times while travelling to work etc.

@citizen,
A seamless solution has already been provided. That is the PHEV. Just drive until the battery run low, then kick in the ICE and continue the journey. No range anxiety whatsoever! Just use the heck out of the battery pack by charging it twice daily so that it will wear out before the calendar-life-related loss of capacity will occur. People opting for a larger battery pack can choose a PHEV with a smaller ICE unit, if they drives a lot in one day so that they won't have to use the ICE and liquid fuel much.

Inductive charging will add weight, cost, and reduces efficiency. Perhaps can be offered as an option when PHEV will gain bigger market share. Personally, I'd rather reach for the plug and plug it in myself, which takes but a few extra seconds...time well spent! The plug and cord can be designed to be self-retracting so that the power cord is always kink-free.

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