PSA and Renault hits government plans to reverse diesel policy

Article by Christian A., on December 5, 2014

A plan by France to get rid of its policies encouraging diesel cars has met criticisms from the country’s own carmakers -- PSA/Peugeot-Citroen and Renault. French Prime Minister Manuel Valls has announced that the government will get rid of policies that have "favored the diesel engine" and will raise excise tax on diesel fuel as well as remove incentives for diesel car purchases.

PSA remarked that a change in the policy will hurt its competitiveness as it has been considered a leader in diesel technology. A spokeswoman for PSA told Automotive News Europe that diesel is a key technology to cut greenhouse gas and to fight against climate change.

She noted that the increase in excise tax on diesel will place France at a disadvantage compared with Germany. For decades, France has encouraged consumers to select diesel cars by imposing lower fuel and purchase taxes.

But that policy is bound to be changed soon, no thanks to green campaigners who claim that diesel emissions damage air quality in busy cities and cause health issues. Both PSA and Renault remarked that any tax hike on diesel fuel will not improve air quality.

A spokesman for Renault remarked that the tax does not “differentiate between modern and older diesel engines, and thus has no real environmental impact.”

The carmaker has noted that said planned fuel tax hikes will raise the price of diesel by 4 cents, and by 2 cents for gasoline. It is estimated that around 80 percent of motorists in France use diesel-powered cars.

If you liked the article, share on:

Pin It

Comments

Recommended

It’s quite safe to say that this generation marks the rise of the electric cars. For the past few years, automakers have been very busy trying to find the perfect...
by - March 28, 2017
Want to go for a sportier look, but don’t have enough cash to burn? Good news for future Ford Edge buyers, as the 2018 model year will have an optional...
by - March 28, 2017
Audi refreshes its portfolio as its go-faster division officially announces the release of six new RS models by the end of 2018. That’s quite a huge number of cars to...
by - March 28, 2017
Has Toyota started the production of a new electric supercharger? Well, a patent that was recently published indicated that they might have. And this electric supercharger looks more durable and...
by - March 27, 2017
The Tesla Model S has finally arrived in South Korean soil and is now available for test drive. But, there’s a catch. You’ll have to wait several months if you...
by - March 27, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries