KBRA Releases Research Greening the Auto Sector: Electric Vehicle Incentives in COVID-19 Stimulus


NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA), in collaboration with ISS ESG, releases research examining how COVID-19 stimulus will affect the automotive industry in the U.S., France, and Germany. While the primary focus of stimulus is emergency economic relief, many countries have also embraced a “green recovery,” with funding specifically targeting climate change resiliency and a sustainable transition. Some governments, especially in the European Union (EU), have attached green strings to stimulus funding directed to carbon-intensive industries, such as the automotive industry. These countries see economic stimulus packages not only as an opportunity for increased job creation and economic growth but also as a chance to accelerate the shift towards sustainable practices.

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Key Takeaways:

  • France and Germany are prioritizing a green transition with their stimulus packages, while climate change mitigation policies have been notably absent at the U.S. federal level.
  • Data provided by ISS ESG shows that automotive manufacturers in the U.S., France, and Germany currently have comparable EV product offerings and each country’s automotive sector is positioning itself towards long-term sustainability.
  • France and Germany are increasing federal support for national EV use and a broader greening of the automotive sector. The U.S., however, is not and current EV subsidies are not being expanded, though this may change with the incoming Biden administration.
  • These dynamics may have credit implications. Auto companies will likely need federal funding to transition to a more sustainable product offering. A lack of funding in the U.S. may decrease the competitiveness of American production and vehicle prices, while France and Germany may be able to boost their economies and increase employment in a post-COVID recovery.

Click here to view the report.

About KBRA and KBRA Europe

KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and is a certified Credit Rating Agency (CRA) with the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe is registered with ESMA as a CRA. Kroll Bond Rating Agency Europe is located at 6-8 College Green, Dublin 2, Ireland.

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KBRA Contacts

Emilie Nadler, Associate, ESG

+1 (646) 731-3386


Andrea Torres Villanueva, Associate, ESG

+1 (646) 731-1238


Pat Welch, Chief Credit Officer

+1 (646) 731-2481


ISS ESG Contacts

Reinhold Windorfer, Associate Vice President

+49 89 462 248 124


Hendrik Leue, Associate Vice President

+49 89 462 248 165