April, 2021

Given the ongoing Covid-19 pandemic, Germany’s Federal Ministry for Economic Affairs and Energy has set itself the goal of counteracting the economic consequences of the pandemic crisis with the help of a comprehensive economic stimulus and future package. As part of this, Germany’s Federal Office of Economics and Export Control (BAFA) has launched the “Investment Program for Modernizing Production in the Vehicle Manufacturing and Supplier Industry” as of 27 March 2021. 

In the funding directive, which is intended to vastly reduce the effects of the pandemic and also strengthen Germany as a production location, automation projects, such as automation with driverless transport systems, are being subsidized by up to 50 percent. 

Which investments are eligible for subsidies? 

Eligible for funding are investments in the expansion and optimization of production facilities and processes. Here, the Federal Office explicitly refers to the establishment of an infrastructure capable of “Industry 4.0”, for example through the use of robots or autonomous driving vehicles in production. 

How much is the subsidy? 

50% of eligible expenses for investments up to €400,000 

40% of eligible expenses for investments up to €1.2 million 

30% of eligible expenses for investments up to €3.5 million 

20% of eligible expenses for investments up to €9.0 million 

Who is eligible to apply? 

Companies in the commercial sector of the vehicle and supplier industry, as well as companies with significant links to said industry, are eligible to apply. A company is eligible if at least 75 percent of its sales are generated by the vehicle and supplier industry. 

What needs to be considered? 

For April 2020 to June 2020, a sales decrease of at least 15 percent compared to the same period of the previous year must be demonstrated – related to measures implemented to contain the Covid-19 pandemic. In addition, the project, which must be carried out within Germany, must not have started yet. 

Applications can be submitted by 30 September 2021. All further information on the funding program can be found here or at www.bafa.de. If you have any questions, please do not hesitate to contact us at sales@idealworks.com.