Jump to content
Create New...
  • William Maley
    William Maley

    Volkswagen CEO Says Maybe It Is Time To Cut Diesel Subsidies

      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

    User Feedback

    Recommended Comments

    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.

    Link to comment
    Share on other sites

    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 

    Link to comment
    Share on other sites

    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.

    Link to comment
    Share on other sites

    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.

    • Like 1
    Link to comment
    Share on other sites



    Join the conversation

    You can post now and register later. If you have an account, sign in now to post with your account.
    Note: Your post will require moderator approval before it will be visible.

    Guest
    Add a comment...

    ×   Pasted as rich text.   Paste as plain text instead

      Only 75 emoji are allowed.

    ×   Your link has been automatically embedded.   Display as a link instead

    ×   Your previous content has been restored.   Clear editor

    ×   You cannot paste images directly. Upload or insert images from URL.


  • google-news-icon.png



  • Community Hive Community Hive

    Community Hive allows you to follow your favorite communities all in one place.

    Follow on Community Hive
  • google-news-icon.png

  • Subscribe to Cheers & Gears

    Cheers and Gears Logo

    Since 2001 we've brought you real content and honest opinions, not AI-generated stuff with no feeling or opinions influenced by the manufacturers.

    Please consider subscribing. Subscriptions can be as little as $1.75 a month, and a paid subscription drops most ads.*
     

    You can view subscription options here.

    *a very limited number of ads contain special coupon deals for our members and will show

  • Similar Content

  • Posts

    • At the New York Auto Show this week, Hyundai unveiled the 2025 Hyundai Tuscon.  This mild refresh modernizes the Tuscon and brings it more into alignment with the rest of the Hyundai lineup, including their EVs. The exterior styling updates, largely consisting of a front fascia update, are subtle. Inside, Hyundai made the interior more open and airy with a new, lower-height dashboard featuring a panoramic gauge and infotainment screen. The screens consist of twin 12.3-inch displays with crisper colors and graphics, as well as faster processing speeds.  While the screens can control all functions of the car, Hyundai still included physical buttons for the most frequently used controls.  Wireless Android Auto and Apple Carplay are now standard across the line. A new steering wheel features a much more open design, and on premium trims, the gear selector is now an electronically controlled stalk on the right side of the wheel, much like in the Hyundai Ioniq 6. On some Tuscon models, a new 12-inch color heads-up display with premium graphics is available, and for the first time, navigation directions from Apple Carplay and Android Auto will appear in the display. Proximity key with push button start is now standard across the 2025 Hyundai Tuscon lineup, while an available Digital Key 2 allows for fob-free driving and access via the driver's mobile phone. For 2025, Tucson adds Forward Attention Warning, which utilizes an infrared camera mounted on the steering column to help track the driver’s eye gaze and monitor attention levels to help ensure safe driving. Available Smart Cruise Control 2 continually assesses driver alertness. If the driver is found to be unresponsive, the system can even help safely bring the vehicle to a stop, activating the hazard lights and the electronic parking brake once the vehicle is stopped. Additionally, rear outboard passenger seatbelts now feature standard pretensioners and load limiters. The powertrains largely carry over from the previous model with a standard 187-horsepower 2.5-liter 4-cylinder at the entry level end. Also available is a 1.6-liter turbocharged hybrid with 231 horsepower with a slightly more powerful electric drive unit (47.7-kW, up from 44.2-kW), and a 6-speed automatic transmission. The plug-in hybrid model features the same 1.6-liter unit, but now paired with a larger electric drive unit with 72.0-kW of output rather than the 66.9-kW motor from the prior year. The plug-in hybrid boasts 268-horspower total system power. With a 13.4-kWh lithium-ion battery pack, the 2025 Hyundai Tucson plug-in hybrid takes less than 2 hours to charge on a level 2 charger.  All hybrid models come standard with all-wheel drive. 2025 Tucson 2.5L models will arrive at U.S. dealerships in June, while 1.6L turbo hybrid and plug-in hybrid models will be available late summer. View full article
    • Plastic cladding = off road.  Instead of killing the Sonata, they should just put plastic body cladding down the side and raise the price by $10k and call it the Sonata HD Overlander X.  Instant hit.
    • Considering a planet with 8 Billion and he sold almost 2 million cars, then he is covering .025% of the population compared to other auto companies. I think 2024 going into 2025 we will see other auto companies top Tesla. You and I are two peas in a pod as I also was up on a hill watching the implosion and thinking what a waste as it was a great building. I love the Kingdome and hate the new stadium.  Agree it was surreal to see the ship hit the support pillar and the whole building just collapse. Be interesting to see what replaces it as today bridges built like that are not allowed due to the exact nature of how it collapsed.  Yes, Tesla is a love or hate and the minimalist approach is not for everyone. I honestly have to agree with the comment @smk4565 I believe made that the touch screen only will be the future of cheap autos and switches and buttons will be the higher end autos. Interesting times we live in for sure.
  • Who's Online (See full list)

  • My Clubs

×
×
  • Create New...

Hey there, we noticed you're using an ad-blocker. We're a small site that is supported by ads or subscriptions. We rely on these to pay for server costs and vehicle reviews.  Please consider whitelisting us in your ad-blocker, or if you really like what you see, you can pick up one of our subscriptions for just $1.75 a month or $15 a year. It may not seem like a lot, but it goes a long way to help support real, honest content, that isn't generated by an AI bot.

See you out there.

Drew
Editor-in-Chief

Write what you are looking for and press enter or click the search icon to begin your search

Change privacy settings