German Lidl is removing electric cars from its selection list. Customers will only receive gasoline-powered models. “Low residual values”
According to the German newspaper Die Welt, Schwarz Gruppe, the conglomerate that owns Lidl and Kaufland brands, has removed electric passenger cars from its selection list in Germany. From now on, management will only be able to choose gasoline-powered vehicles. The company cites economic uncertainties and the “low residual values” of electric cars, meaning their significant drop in value when tried to be resold.
Lidl invests in electric trucks, but management must drive gasoline cars
The Lebensmittel Zeitung, which first reported on the new strategy, cites a spokesperson’s statement expressing a desire for “continuous situation assessment” and a “change in ordering policy” once “the market conditions stabilize.” Unlike most companies in the industry, Schwarz-Gruppe does not lease vehicles but purchases them for its fleets and sells them after a set period of use. In other words, it aims to lose as little as possible on cars, possibly even making a profit from them, which is difficult given their low residual value.
The situation is favorable for ordinary people, with falling prices of electric cars harming the financial balance of large corporations. Additionally, Germany’s tax environment offers certain benefits to individuals using company-owned electric vehicles, but these exemptions do not apply to the companies that are the actual owners of the vehicles. The consequences are quite paradoxical: higher affordability for drivers makes employees more inclined to choose electric cars, thus their maintenance begins to generate unexpected costs for employers. Such a problem does not exist with gasoline cars.
In February 2026, Schwarz Gruppe signed a cooperation agreement with BMW to develop the business foundations for recycling electric vehicles taken out of service
But that’s not all; Welt continues the topic (source). Technological progress means demand for used electric vehicles is lower than expected. Cars that are only a few years old seem outdated due to range, charging capabilities, or software. Moreover, these are almost exclusively German electric vehicles... Therefore, the company decided that as part of employee benefits, internal combustion engine models, city tickets, and bicycles will be available. At the same time, the company maintains its decarbonization strategy to reduce CO2 emissions in heavy transportation.
Volkswagen’s partnership with Schwarz Gruppe regarding the WeShare service. Illustration from 2019, symbolic of the aging technology in electric vehicles. Additionally, Lidl primarily collaborates with BMW (c) Volkswagen
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