Jump to content
  • William Maley
    William Maley

    Volkswagen CEO Says Maybe It Is Time To Cut Diesel Subsidies

    Sign in to follow this  

      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

    Sign in to follow this  


    User Feedback

    Recommended Comments

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

    • Downvote 1

    Share this comment


    Link to comment
    Share on other sites

    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.

    Share this comment


    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 

    Share this comment


    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.

    Share this comment


    Link to comment
    Share on other sites
    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.. 

    Share this comment


    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

    Share this comment


    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.




  • Similar Content

    • By William Maley
      There will be one less engine option for the Chevrolet Equinox and GMC Terrain come the 2020 model year. The Car Connection first reported the news on the Equinox yesterday morning, while Autoblog followed with the Terrain news later in the day. Both stories reported the same reason for cancellation, they didn't sell.
      "We did discontinue the diesel engine option in the 2020 Chevrolet Equinox due to low demand," said Chevrolet spokesman Kevin Kelly.
      The news doesn't come as a shock to us. Diesel engines have gotten a bad rap since the Volkswagen diesel emission scandal came to light, causing sales to drop. The value argument was also tough for both models. A diesel Equinox started at $30,795. But only for $100 more, you could have gotten into the 2.0L turbo-four that offered better performance. Over at the Terrain, the diesel cost around $2,000 more than the 2.0 turbo-four. Diesel fuel is more expensive than its gas counterpart as well.
      That will leave the upcoming Mazda CX-5 Skyactiv-D as the only diesel option in the compact crossover class. But as we have noted previously, the diesel option is quite expensive (begins at $42,045) and fuel economy figures are disappointing (27 City/30 Highway/28 Combined).
      Source: The Car Connection, Autoblog

      View full article
    • By William Maley
      There will be one less engine option for the Chevrolet Equinox and GMC Terrain come the 2020 model year. The Car Connection first reported the news on the Equinox yesterday morning, while Autoblog followed with the Terrain news later in the day. Both stories reported the same reason for cancellation, they didn't sell.
      "We did discontinue the diesel engine option in the 2020 Chevrolet Equinox due to low demand," said Chevrolet spokesman Kevin Kelly.
      The news doesn't come as a shock to us. Diesel engines have gotten a bad rap since the Volkswagen diesel emission scandal came to light, causing sales to drop. The value argument was also tough for both models. A diesel Equinox started at $30,795. But only for $100 more, you could have gotten into the 2.0L turbo-four that offered better performance. Over at the Terrain, the diesel cost around $2,000 more than the 2.0 turbo-four. Diesel fuel is more expensive than its gas counterpart as well.
      That will leave the upcoming Mazda CX-5 Skyactiv-D as the only diesel option in the compact crossover class. But as we have noted previously, the diesel option is quite expensive (begins at $42,045) and fuel economy figures are disappointing (27 City/30 Highway/28 Combined).
      Source: The Car Connection, Autoblog
    • By Drew Dowdell
      Volkswagen of America June 2019 Sales
        June. 19
      June. 18
      Yr/Yr% 
      change
      June. 19 YTD
      June. 18 YTD
      Yr/Yr% 
      change
       Golf
       518 
       578 
      -10% 
       3,537 
       4,036 
      -12% 
       GTI
       979 
       1,282 
      -24% 
       6,947 
       9,189 
      -24% 
       Golf R
       479 
       470 
      2% 
       1,458 
       2,240 
      -35% 
       e-Golf
       366 
       32 
      1,044% 
       1,893 
       776 
      144% 
       Golf SportWagen
       1,314 
       1,190 
      10% 
       5,123 
       8,016 
      -36% 
       Total Golf Family
      3,656 
       3,552 
      3% 
       18,958 
       24,257 
      -22% 
       Jetta Sedan
      8,486 
       7,235 
      17% 
       48,973 
       32,961 
      49% 
       Jetta SportWagen      
       (now Golf  SportWagen)


                N/A 

      62 
      N/A 
       Total Jetta
      8,486 
       7,239 
      17% 
       48,973 
       33,023 
      48% 
       Beetle Coupe
      579 
       829 
      -30% 
       4,485 
       5,206 
      -14% 
       Beetle  Convertible
      1,107 
       299 
      270% 
       4,913 
       2,761 
      78% 
       Total Beetle
      1,686 
       1,128 
      50% 
       9,398 
       7,967 
      18% 
       Passat
      797 
       3,793 
      -79% 
       11,456 
       22,356 
      -49% 
       CC

       31 
      -84% 
       38 
       294 
      -87% 
       Arteon
      275  N/A  N/A  598  N/A  N/A   Tiguan Limited
      128 
       1,561 
      -92% 
       322 
       9,293 
      -97% 
       Tiguan
       9,250 
       7,788 
      19% 
       57,009 
       46,102 
      24% 
       Total Tiguan
      9,378 
      9,349 
      0% 
      57,331 
      55,395 
      3% 
       Touareg
       18 
       150 
      -88% 
       130 
       1,448 
      -91% 
       Atlas
       7,424 
       3,699 
      100% 
       37,726 
       28,158 
      34% 
       Total Car
      14,905 
      15,743 
      -5% 
      89,421 
      87,897 
      1.7% 
       Total SUV
      16,820 
      13,198 
      27% 
      95,187 
      85,001 
      12% 
       TOTAL 
      31,725 
      28,941 
      10% 
      184,608 
      172,898 
      6.8% 
    • By Drew Dowdell
      After a brief hiatus, Ram is reintroducing the EcoDiesel for the 2020 Ram 1500 and in doing so, snatches away the torque crown held briefly by GM with their inline 6-cylinder diesel. 
      The 3.0 L V6 Diesel in the 2020 Ram produces 480 lb-ft of torque at 1,600 rpm, 20 more than the 460 in the GM Inline-6, while horsepower increases to 260 hp at 3,600 rpm, a bit lower than the GM's 277 hp and the Ford Powerstroke 250 hp.   The EcoDiesel is a DOHC V6 and achieves these numbers with a new generation water-cooled variable geometry turbo charger, higher compression ratio, redesigned cylinder heads, lightweight aluminum alloy pistons, and a redesigned EGR system. 
      The EcoDiesel will be available in all models and configurations, including for the first time, the Ram Rebel.  The 2019 Ram 1500 Classic is offered with the previous generation of this engine. 
      The engine will be produced at FCA's facility in Ferrara, Italy. 
       

      View full article
  • Social Stream

  • Today's Birthdays

    1. DBeaSSt
      DBeaSSt
      (49 years old)
  • Who's Online (See full list)

  • My Clubs

About us

CheersandGears.com - Founded 2001

We ♥ Cars

Get in touch

Follow us

Recent tweets

facebook

×
×
  • Create New...