French minister: ‘EV subsidy, but only for European models’

“If we want to protect our industry, our jobs and our technology, we’re going to have to play it the same way,” said Bruno Le Maire, according to Bloomberg. He is referring to the EV subsidies in the United States, which only apply to cars that are also built in the US. In addition to protecting its own market, Le Maire also believes that minimizing the environmental impact when sourcing raw materials. After all, this can be much more difficult to check for cars from China, for example, than for cars that are largely built within the EU.

In France, a very substantial purchase bonus of up to €7,000 applies to new EVs. That made the cars so popular there that they were bought to be resold abroad. The French government has now put a stop to this, but based on Le Maire’s comments, it does see more possibilities to ensure that the subsidy money ends up in the right place.

The ‘American model’ was previously portrayed by the EU as unfair. In the US, the federal grant of up to $7,500 only applies to electric cars and plug-in hybrids made in the US. That does not completely exclude foreign brands, but it does oblige them to build the car in question in the US, with materials purchased there. For example, a Mercedes EQS is not eligible. However, the new Mercedes-Benz EQS SUV does, because that car is built in the US.