Germany agrees $2.3 billion aid for auto industry to navigate technology shift
<p style="text-align: center;"><img title="1604386128608899.jpg" alt="9.jpg" src="/ueditor/php/upload/image/20201103/1604386128608899.jpg"/></p><p>BERLIN, - Germany has agreed a 2 billion euro ($2.33 billion) aid package to help its carmakers and auto industry suppliers switch to greener engines and automated driving, according to an Economy Ministry paper seen by Reuters on Monday.<br/><br/>Under the programme, which is due to come into force in 2021, the government plans to distribute grants to key industry players by 2024.<br/><br/>It will also use the funds to promote research and development in areas including the digitalisation of supply chains, 3D-printing and the shared use of production data, and give support to so-called clusters of companies to train employees.</p><p><br/></p><p>The government plans to cover up to 60% of the costs for large companies and 80% for small and medium-sized companies of making production facilities more environmentally friendly.<br/><br/>"The switch to new products, especially in the field of e-mobility, requires an adjustment of production", the paper says. "Faster innovation cycles demand more flexible production facilities. The cost pressure in production is high."<br/><br/>The programme is part of Germany's economic stimulus plan aimed at cushioning the effects of the coronavirus crisis.<br/><br/>The Economy Ministry's proposal will now be put to other ministries for consultation.</p>
03 Nov,2020
