PSA and Renault hits government plans to reverse diesel policy

Article by Christian Andrei, 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:

Comments

Login or Create new account to add a comment!

Recommended

Hyundai is making the green vehicle race more competitive by offering three powertrain types -- pure electric (EV), hybrid (EV plus combustion engine) and plug-in hybrid (PHEV) – in one...
by - December 9, 2016
Although specs for the new Renault Megane had already surfaced several weeks ago, we didn’t know that the company has cooked up something new. Aside from the 200hp gasoline, Renault‘s...
by - December 9, 2016
For the first time in fifty-eight years, Infiniti registers its first US-Spec Q60 Coupe in Cuba. American products have not been allowed entry into Cuba for six decades. But it...
by - December 9, 2016
Chevrolet has already given out the pricing for some of its 2018 Equinox models. Not only will the new Equinox be available in both the US and Canada, it is...
by - December 9, 2016
Nearly all details have been set with regards to the upcoming market introduction of the new Jaguar I-Pace. Its production version was recently previewed at the 2016 Los Angeles Auto...
by - December 8, 2016
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