>Why isn't the German government making a government funded car to ruin Volkswagen or Mercedes?

I guess that's just the same question again. Does society benefit enough from everyone having access to free cars, outweigh the harm done by businesses risking bancrupcy because their product is now something that should be free? And also that other businesses start to wonder if it's their product that will be "should be free" in the future?

I wouldn't consider it inconsequent to say "yes" on the first question but "no" on the other...