Lidl and Kaufland Owner Halts Electric Car Purchases

The German Schwarz Group, which owns the Lidl and Kaufland retail chains, has temporarily stopped ordering new all-electric company cars for its fleet in Germany, citing instability in the automotive market and changing regulatory conditions.

The company explained that it does not lease its company vehicles but instead owns them and later sells them as used cars. It said that the low residual value of electric vehicles on the German used-car market was causing significant financial losses.

According to the company, weak demand for used electric vehicles stems from rapid technological development, which leaves such vehicles significantly behind new models in range, charging time and software after just a few years. At the same time, the purchase of new electric vehicles is supported by tax incentives that do not apply to used vehicles.

The Schwarz Group emphasized that the move does not represent a departure from its climate goals, saying its goal of achieving carbon neutrality by 2050 remains unchanged. It said it may reconsider the decision if market conditions change.

(welt, bak)