Germany's Green Drive: Transforming Cars and Defence

Germany's new coalition government promises support for the car industry through incentives for electric vehicles and plans to repurpose car plants for defence, aiming to boost military production. It also seeks to prevent emissions fines and support hydrogen-powered vehicles, reflecting a holistic approach to industry transformation.

In a strategic move, Germany's new coalition government is set to boost its automotive and defence sectors. A coalition agreement, seen by Reuters, outlines measures to bolster the car industry with incentives for electric vehicles, including hybrids and those with range extenders, alongside tax perks valid until 2035.

Alongside electric vehicle support, the government is considering repurposing surplus car plants for military use, responding to a rising demand for defence manufacturing in Europe. This expansion aligns with efforts to increase defence capabilities as US support dwindles, highlighting the urgent need for scalable growth in the sector.

Furthermore, the government pledges to tackle emissions fines proactively, maintaining previously eased targets to ensure funds are directed towards electrification. Plans also include establishing hydrogen fueling infrastructures for commercial vehicles, underlining Germany's commitment to greener, efficient transport solutions.

(With inputs from agencies.)