Prop Up That Industry

German Chancellor Olaf Scholz wants more government pressure on support for battery cars, their manufacture, and their sale to an uninterested public.

German chancellor Olaf Scholz has called for the introduction of Europe-wide measures to increase uptake of electric vehicles, in a speech at Ford Motor Corp’s factory in Cologne, just weeks after the US car maker outlined plans to lay off 4,000 of its European workers.
In the speech at Ford’s EV factory on Tuesday, Scholz argued Germany should work to facilitate the “leap forward” towards “electromobility” by providing “support” for the country’s car industry, including by subsidizing energy costs for EV battery makers.

And this bit of contradiction:

Scholz said the support for the car industry should also aim to protect worker’s jobs….

He can’t have it both ways, except through government-mandated featherbedding. It takes fewer workers to build an electric motor and a battery car than it does an ICE motor and an ICE-powered car. It takes fewer suppliers to supply fewer parts, and fewer employees at each supplier, to provide the simpler components of a battery car than the more complex components of an ICE car.

The ripples go on from there: secondarily, all those mom-and-pop stores—diners, grocery stores, bars, entertainment venues, and so on—will get fewer customers from those smaller work forces at the EV factories and supplier plants, resulting in fewer mom-and-pops and fewer employees in surviving mom-and-pops.

No. If the battery car industry still needs overt government fiscal subsidies and mandates aimed at pressuring consumers to spend their own money on even subsidized battery cars, those vehicles and that industry aren’t ready for operation.

The only legitimate support for battery cars is the consumers’ interest in buying them in a free, competitive market shorn of government pressures. That interest isn’t yet there.

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