Volkswagen CEO Thomas Schäfer has called for government subsidies to continue for at least five years to support the production of affordable electric vehicles, warning that the industry is not yet ready to stand on its own.
In an interview with Auto Motor und Sport, Schäfer stated that removing subsidies too soon would hinder the mass adoption of electric cars.
“There is no long-term perspective. Just like in Germany, subsidies for electric cars disappeared overnight,” Schäfer explained. “It is too early, even though prices are coming down. If we are to deliver cheap electric cars to everyone, we need support for the next five years.”
Volkswagen’s plea for financial backing mirrors calls from other carmakers, such as Ford, which also stressed the need for extended government support.
German Chancellor Olaf Scholz recently echoed similar sentiments, urging all European Union countries to adopt consistent incentives for electric cars.
But when asked about the financial burden on taxpayers—many of whom do not drive electric vehicles—Scholz avoided commenting directly during a visit to Ford’s Cologne factory.
Volkswagen’s situation appears increasingly dire.
The company is reportedly considering closing several of its German factories for the first time in its history, a drastic measure to cope with mounting economic pressure.
Volkswagen CFO Arno Antlitz issued a stark warning, stating the company has only “two, maybe three years” to resolve its financial issues before it’s too late. Factory closures and layoffs are on the table as management scrambles to stabilize the company.
This follows Audi's recent decision to close its factory in Belgium, part of the broader VW Group. The closure will result in 3,000 job losses, leaving Belgium with just one operational car factory.
