France's Industry Minister Marc Ferracci has demanded that the EU come up with a European crisis package that includes must pump out subsidy kroner for new electric cars.
France's industry minister, Marc Ferracci, is now demanding that the EU pump money into a comprehensive crisis package with support for both the car and steel industries in Europe.
The minister highlights the need for support for European electric cars to withstand competition from Chinese manufacturers who have gained ground with their cheaper and technologically advanced models.
Ferracci points out that the European car industry, especially when it comes to the production of electric cars, is under pressure from China.
In order to ensure the survival and competitiveness of European manufacturers, he suggests that the EU introduce economic support for those who wish to buy European-produced electric cars.
This subsidy could be based on a system similar to what France already has. Here, the size of the support in kroner and øre depends on how environmentally friendly the production of the car has been.
READ ALSO: 48,000 have ordered an electric car from 2007 that does not exist yet
Ferracci believes that such an arrangement could be an important step towards strengthening European companies in a time of intense competition.
Reuters writes that.
In addition to the automotive industry, Ferracci also highlights the steel sector, which he says faces similar challenges. He emphasizes the need for stricter import rules against Chinese steel, which competes with European producers on both price and technology.
Ferracci hopes that the EU's upcoming initiative, known as the "Clean Industrial Deal," will create a favorable market for climate-friendly steel. This could potentially support the EU's green objectives by reducing the industry's dependence on imported steel, which is often produced under less stringent environmental requirements.
Ferracci's proposal for a crisis package must be seen as a response to the economic challenges that have affected several of Europe's major industries in recent years. The EU has also already added a punitive duty on top of the import duty that Chinese brands pay for electric cars.
However, the new rule also affects European car manufacturers. In fact, the Volkswagen group believes that the rule could mean the death of at least one car brand. Read more about it here .
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