Laverdalothar
Hero member
- Location
- Germany
Steve, if you want to make people change, you have to make the change attractive or at least affordable. Sure BEV's were more expensive in the beginning (just as every new technology that is produced in lower numbers and that needed a complete new development of almost all components). To convince manufacturers there is a market, you need to help create demand. Once the deman grows, you can take back some of the subsidies and help other companies/verticals to grow their market. This is the job of a government, it helps create jobs and with the growing number of jobs, it produces more demand and more tax paid, which re-funds the spending done in first place.Well I didn’t say that, I simply displayed the lack of fiscal base needed to build an all electric vehicle fleet, as Tesla was during the very early days, where vast amounts of US taxpayer cash was needed early on, and constant purchase rebates to new car owners.
Of course this rebate system has run its course here in Canada, as 8-10 yrs of attractive tax rebates has built aN electric vehicle base over 20%, which gives electric cars free road tax, free HOV lanes, free parking, even free electricity at some shopping malls. Reduced income to regional jurisdictions responsible for road maintenance soon found out that these electric cars often weighing 40% more than same size ICE vehicles, are causing much more wear of the roads.all rebates are gone now, and sales are crashing.
BEV's are needed to make us independend of Dictators and regimes that finance wars, surpress their people, limit free press and free speach, work against constitution and enrich themselves. For the very same reason, we need Heat pumps, green electricity etc. etc. etc. Good if the government of a country understood that and helps their people to cope with the change, done f.e. by subsidies
Same btw. happend in France and Germany roughly 15 years ago with conventional/ICE cars: Mrs. Merkel and the government copied an Idea the then elected french government successfully did already: if you scraped your old car and bought a brand new one, you got something like 3.000€ cash back from the government. Worked fantasticly and as so many people bought new cars, new jobs were created, companies that previously struggled (VW, Mercedes, Opel etc.) now had big piles of orders that they almost could not handle, the supply industry boomed (which completely struggled before) and we had record numbers in Taxes - allthough the government spent 3.000€ on every car. Why? Because 3.000€ was in average just 5% while VAT was 19%. So - on every bought car, the government EARNED actually 14% tax still. Cars, that wouldn't have been bought if there hadn'd been subsidies...
Same was with EV's. When I bought my Tesla, i got 5.000€ back, wich was 9% at that time. Still 10% extra for the Government. I wouldn't have considered a brand new car without that rebate (allthough I have to admit, that the car manufacturers calculated that in and simple rose their prices by that 5.000€...). Because of no used car market existing really (technology was to new), the prices for the few used cars were almost the same as the new car with the rebate. So - why should I buy a used car then, when I can get a new one for the same nett price? Still, at the end everyone was happy.
Same goes for PV-Systems, new heatings (Heat pump), Isolation of the house (roof, walls) etc.: Government supports that, wich supports the industry, wich creates jobs, which causes more demand, wich brings more money into the government.
Subsidies aren't something bad, they are simply a tool to steer the demand and - if done right - bring more cash to the government to be hopefully invested wisely (ok, the last one was a bit cynical , but...
