Connect with us

Hi, what are you looking for?

CleanTechnica

Cars

Follow The Money — Dutch Government’s Love Revealed, Big Business Over Clean Technology

The economic slowdown from the coronavirus has induced some governments to try to stimulate the economy. Two of the Dutch incentives are worth a closer look.

The economic slowdown from the coronavirus has induced some governments to try to stimulate the economy. Two of the Dutch incentives are worth a closer look.

Recently, a new incentive for electric vehicles was introduced in the Netherlands. We had an incentive for about €15,000 over 5 years for benefit-in-kind (BiK) company cars, renewed every time you get a new company car. Now, there is a new €4,000 incentive that private buyers can get. In the fine print, it is revealed that the budget is only €10 million. So, it is just for the first 2,500 applicants that qualify. And it is a personal incentive you can get only once. For those who only buy used cars, there is a €2,000 incentive, also only allowed once. The budget is €7.5 million. So, that is for the first 3,500 applicants that qualify.

In the Netherlands the new car market is just over half BiK company cars, and a bit less than half private buyers. BEV penetration of the BiK market is about 20% of the 250,000 new sales a year. That is 50,000 lucky people who get the €15,000 incentive. Did I mention that BiK drivers are overwhelmingly conservative voters? The main supporters of the Prime Minister’s party?

The private buyers are buying about 200,000 vehicles per year. Often, they are buying the lower-cost models in the A-segment and B-segment. The 2,500 that can get the token €4,000 are mostly voters of the more liberal parties. There are many civil servants, teachers, and healthcare workers among them. BiK cars are of course for the better paid employees of the private sector.

This incentive for private buyers has been discussed for years — “too expensive” was always the argument. Difficult new laws and regulations are needed, whereas the BiK incentive could use the existing tax laws. But the coronavirus changed all this. The economy needed a big stimulus and one of the main motors to get it going again, according to the government, could be the EV subsidy for private buyers.

The automotive sector is not the only sector hit hard. Another sector is the airline industry. With many borders closed, people restricted from traveling, and holidays cancelled, this economic sector is really hit hard.

Many companies are struggling. Some are going under. But the airline industry is an industry of “National Champions.” Two of those champions are Air France and Dutch KLM, which merged into a single company, but not completely. The French government is supporting Air France with €7 billion ($7.7 billion) and the Dutch government is supporting KLM with €3.5 billion ($3.85 billion).

And now we have a clear picture of the Dutch government’s priorities. They have a stingy €17.5 million for EVs to fight the coronavirus slowdown and work toward a cleaner, healthier, and economically stronger future. The most frugal of the “Frugal Four” (Austria, Sweden, Denmark, and the Netherlands) is willing to supply 200 times that amount, €3,500 million, for struggling high-atmosphere-polluting KLM.

The Frugal Four are the EU countries that abhor solidarity in the face of disaster. These coronavirus victims should not bond together to help each other at this time — that is their idea. I will not discuss their policy statements, because I am too ashamed of being a citizen of one of them.

 
Check out our brand new E-Bike Guide. If you're curious about electric bikes, this is the best place to start your e-mobility journey!
 
 
Appreciate CleanTechnica’s originality and cleantech news coverage? Consider becoming a CleanTechnica Member, Supporter, Technician, or Ambassador — or a patron on Patreon.
 
Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.

Advertisement
 
Written By

Grumpy old man. The best thing I did with my life was raising two kids. Only finished primary education, but when you don’t go to school, you have lots of time to read. I switched from accounting to software development and ended my career as system integrator and architect. My 2007 boss got two electric Lotus Elise cars to show policymakers the future direction of energy and transportation. And I have been looking to replace my diesel cars with electric vehicles ever since. At the end of 2019 I succeeded, I replaced my Twingo diesel for a Zoe fully electric. And putting my money where my mouth is, I have bought Tesla shares. Intend to keep them until I can trade them for a Tesla car. I added some Fastned, because driving without charging is no fun.

Comments

You May Also Like

Cars

Shanghai will subsidize battery electric vehicle purchases within its borders with 10,000 yuan (~$1,500) per unit for the rest of 2022, Zero Hedge reports, citing...

Clean Transport

Chevrolet has released another preview of the all-electric Chevrolet Blazer SS and has announced its official reveal date: Monday, July 18th. Stay tuned for...

Cars

Tesla CEO Elon Musk talks about the U.S. Department of Energy (DOE) loan that Tesla received once upon a time and more in the...

Cars

Chinese Lynk & Co 01 PHEV #1 in May In the context of a falling overall market, down 7% year over year (YoY) in...

Copyright © 2021 CleanTechnica. The content produced by this site is for entertainment purposes only. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of CleanTechnica, its owners, sponsors, affiliates, or subsidiaries.