It looks like Germany won't be jumping into the race to see who can provide the biggest subsidies for purchases of plug-in vehicles. At the launch of the National Program for Electric Mobility in Berlin on Monday, German officials said that federal funding would instead go toward research programs to advance the technology. The program has already given €500 million to more than 150 projects.

Given the limitations in terms of cost and energy density of current battery technology, funding basic research may turn out to be a better approach to make vehicle electrification viable than simply paying to get current EVs on the road. By funding research now it can directly help make the next generation of cars more appealing and affordable to consumers. Nonetheless, automakers that were hoping for some direct incentives for the products they have coming to market over the next several years are not happy.

[Source: Deutsche Welle]

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