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  • William Maley
    William Maley

    Volkswagen CEO Says Maybe It Is Time To Cut Diesel Subsidies

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      Surprising to say the least

    Diesel is quite popular in Europe partly due to subsidies provided by governments - in this case, a lower tax rate on diesel fuel than gasoline. The thinking at the time was diesel engines burn their fuel more efficiently than gas engines, thus they contribute less to global warming. But as the Volkswagen diesel emission scandal would reveal, diesel vehicles aren't that much cleaner, producing more nitrogen oxide emissions than their gas counterparts. Now, one CEO from a German automaker is saying that maybe it is time to end the subsidies.

    “We should question the logic and purpose of diesel subsidies. The money can be invested more sensibly to promote more environmentally friendly technologies,” said Volkswagen CEO Matthias Müller to German paper Handelsblatt.

    This is quite the surprise as Volkswagen along with other German automakers said diesel still had a future due to new pollution reduction technologies. Also, Volkswagen did very well with the sales of diesel models. But with the dark cloud of the diesel emission scandal, Müller likely sees the writing on the wall and wants to get out ahead.

    Müller went on to say that he was in favor of banning older diesel vehicles from city centers. But he said that newer diesel vehicles should be exempt from the bans as they meet "stricter standards on nitrogen oxide emissions".

    Source: Handelsblatt via New York Times

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    Other than HD trucks and commercial, time to just ban diesel cars period. Petrol, CNG, Hybrid, Hydrogen and EV is the future.

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    I have a better idea: tax diesel fuel the same as gasoline.  Poof: no more subsidies.  It is rare that governments SHOULD have energy subsidies of one form or another.  Those subsidies distort markets and consumer choice.  It is best to get rid themselves of them.

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    5 hours ago, balthazar said:

    ^ Right now the federal gas tax is 18.4 cents & the tax on diesel is 24.4 cents.

    OK, So then just call it a Quarter for either form of Fuel and call it a Day of good balance and revenue to help fund the gov. :P 

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    On 12/12/2017 at 7:22 AM, balthazar said:

    ^ Right now the federal gas tax is 18.4 cents & the tax on diesel is 24.4 cents.

    The VW CEO was referring to diesel subsidies in Europe not the USA.

    I do thank you for pointing out that the federal government does NOT favor diesel over gasoline.

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    7 minutes ago, riviera74 said:

    Yes the UK PAYS more than anyone else, especially here in the USA.

    I've read their insurance costs are obscene also.. 

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    It's a rock / hard place problem. Not only do auto makers need to watch their NOX emissions from diesels, they also need to manage their carbon emissions per mile which diesels are much better at than gasoline. So diesel can be helpful to the carbon reduction goal, but they have to clean up their NOX.  

    Coming from any other manufacturer, this observation on diesel subsidies may hold water, but from VW it sound like sour grapes due to the situation they put themselves in.

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    • Saw one of these at the dealership while the Flex was being serviced.   Vanderhall Carmel (Autocycle). It’s like an Aerial Atom had a drunken baby with a Polaris Slingshot.  
    • Yeah, I haven't been in a Dunkin or Tim's in years...I occasionally leave the house and go through the drive thru at Dunkin..   in the before time, my favorite get of the house and enjoy a breakfast place is Bruegger's Bagels...a large coffee and an everything bagel w/ bacon, egg and cheese was a favorite going back 20+ years--used to go to one in Colorado Springs, Denver, Phoenix, and now here.   When I was at MCI/Worldcom back in the late 90s, had a coworker that I used to meet up with at 6am at Brueggers once a week for breakfast..  I miss the simple pleasures of the before time.
    • There are some Timmys in small towns in North America and they seem to do well or they wouldn't be there.  Just like A&Ws would plant themselves in random small North American towns. However, for the ambiance, you can't beat a Tim Horton's location for a hot drink and a fixed up bagel or a muffin in a Canadian resort area or an urban Canadian setting, eating and drinking with the "eh" or "allo" (how Francophones say hello) crowd. I go through a lot of tea bags at home.  But, every once in a while, it's great to get your coffee or tea in one of these places and enjoy the moment.
    • One reason to go Electric! On a positive note, this is gorgeous. I brew my own at home, saves lots of money.
    • I like Dunkin also..have two within a mile of me, and a Krispy Kreme a bit farther away.  I wish I had a Tim Horton's nearby, oddly there are some in small towns like Coshocton, Ohio and in the Columbus metro area, but none in the Cleveland area.  But I get my 3 cups of Tim Horton's dark roast every morning from my Keurig....
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