VW Diess boss pushes for buy premiums 03.05.20

Volkswagen AG CEO Herbert Diess pushed the policy shortly before the car summit at the Chancellery to make quick decisions on a state premium for buying a car.

“The next few weeks will be crucial,” said Diess of the Frankfurter Allgemeine Sonntagszeitung (F.A.S.) in light of the crown-related economic downturn. “Therefore, there are no fundamental discussions, but to focus on the economy and the rhythm. Otherwise, we will run out of time.”

This emphasized that the premium should not only apply to electric cars: “We need the premium regardless of the type of unit, for the full range of products.” When it comes to electric cars, VW is already at the limit of capacity, and some models are already out of stock. Even modern combustion engines could reduce CO2 emissions by 30 percent compared to the existing fleet. The premium does not refer specifically to the automotive industry, but to the economy in general. “If you ask how you can better boost the economy, you end up in the car very quickly in Germany,” said the CEO.

In return, as an incentive to buy green vehicles, Diess demanded a radical conversion of vehicle and mineral oil taxes to emissions of climate-damaging emissions and a general rise in the price of CO2. Instead of the expected entry fee of 25 euros, it should be better than 50 euros, the manager explained. This is “absolutely manageable for ordinary people,” said Diess, who has already focused his corporate strategy heavily on electric drives.

In view of the stricter CO2 emissions targets planned by the EU until 2030, Diess was skeptical in the conversation with the newspaper. “A new adjustment is yet to be discussed,” he said. As a result of the long-term switch from the combustion engine to the electric motor, numerous jobs in Germany have already been lost. “If we accelerate this process even more, it means even more changes in less time, we have to be clear about it,” warned the head of VW.

DJG / cln