EU Considers $22 Billion Electric Vehicle Stimulus, U.S. Mulls Cash-for-clunkers Redux

The European Commission is reportedly preparing an economic stimulus package aimed at helping the EU bounce back from economic hardships caused by the coronavirus lockdown — saving some room for incentivized electric vehicle sales.

As you may have noticed in your home country, stimulus package proposals often involve lawmakers attempting to slip something in to aid their favorite causes. While not every nation in the EU feels similarly on all matters, environmentalism has been a reoccurring theme within the union — and has encouraged it to make aggressive decisions when it comes to promoting vehicles.

For decades, the European Union spent billions in subsidies and tax breaks to make diesel fuel cheaper than gasoline. Diesel engines produced less carbon dioxide and opened the door to biofuels, so the presumption was they were better for air pollution. That turned out not to be true, so the continent then pushed hard into subsidizing EVs, with diesel sales crumbling as a result.

Now seen as the only way to save the world from heavy, gas guzzling crossovers that people actually buy in great numbers, battery electric cars are getting their moment in the sun. And it may get a little brighter. The next EU stimulus package is set to include €20 billion ($22 billion USD) for those deciding to purchase an environmentally friendly passenger car.

Read more
GM Admits It Lied About Federal Stimulus Package's Job Creation

First, let’s get something out in the open. The Detroit Free Press’ story on the jobs impact of Uncle Sam’s Motown mega-order forgets to mention one salient fact. As TTAC reported back in June, one-third of the 17,600 vehicles ordered from Chrysler, Ford and GM were/are/will be assembled outside the United States. Any article about the order’s effects on American jobs should begin with that fact, which this one has. Surprise! The federal fleet sailing to The Big Three’s rescue did no such thing for American autoworkers. “The overriding purpose of the stimulus was to jump-start the economy and create jobs, though Obama never claimed the vehicle purchases would create jobs. While the latest reports from stimulus recipients show all three carmakers getting orders totaling $270 million so far, job creation from the purchases was nil.” Don’t you just love it when the media pre-apologizes for the President? How about when a major manufacturer lies about its federal blessing to please its federal taskmasters?

Read more
  • John I had an 87 escort GT that was silver, it was a fun little car and got 35+ mpg average, one time I got 42 average on a turnpike trip.
  • Jho65697139 That's going to take a lot of buffing.
  • Corey Lewis No need for unique qualifications to care for this thing, it's just a Corolla with a different body on it.
  • Jeff S How's you Fiat doing?
  • Syke Had the exact same car, only difference is that the trim was the JDM bB rather than the American xB. Enjoyed the car immensely, originally bought it because it was excellent for transporting my then-invalid wife and her wheelchair around. Best thing about it? I also owned a Porsche 924S at the same time. I could go from the Porsche to the Scion and not feel disappointed by the difference in the way they drove.