The French government and major carmakers have agreed to subsidise the switch from fossil fuel powered cars to electric vehicles. The manufacturers will thus supplement France’s scrappage scheme so that it can be raised and extended in 2019.
We had reported on the ongoing negotiation in our newsletter a few days ago. Said talks are now bearing fruit with Renault, PSA, Toyota, BMW, Ford, Kia and Mazda all having agreed to pay their part of a premium paid for old gas guzzlers in exchange for an electric car or plug-in hybrid.
The details have yet to be worked out. It is certain though that the French government wants to raise the scrap premium from 2,000 to 2,500 euro for all new and second-hand electric or hybrid cars for the lower-income households by 2019. For all other households, the premium of 2,500 euro is to include hybrid cars too, not only full EVs, as it is today.
The carmakers on the other hand have urged the government in Paris to not only raise the premium but to also make sure it is handed out in a more timely manner. According to their complaints, manufacturers have advanced the money of the government’s premium for 70% of their clients buying a cleaner car.
Initially, only 100,000 drivers were expected to apply for the premium. However, 250,000 people have claimed the financial support so far in France – a number that is expected to rise to 300,000 applications before the year’s end.
All details of the new scrappage scheme will follow by the end of November.