German parties agree diesel costs deal - but keep it secret

Young journalists club

News ID: 29527
Publish Date: 11:38 - 02 October 2018
TEHRAN, October 02 - Bleary-eyed leaders of Germany’s coalition parties emerged in the small hours of Tuesday morning to say they had agreed on a way of cutting pollution in cities while avoiding unpopular driving bans.

German parties agree diesel costs deal - but keep it secretTEHRAN, Young Journalists Club (YJC) -Bleary-eyed leaders of Germany’s coalition parties emerged in the small hours of Tuesday morning to say they had agreed on a way of cutting pollution in cities while avoiding unpopular driving bans. 

But they were tight-lipped on the details of their plan, saying only that ministers would outline the details of a “highly complex” agreement later in the day.

Earlier, conservative Transport Minister Andreas Scheuer said German carmakers were willing to bear most of the cost of upgrading old diesel cars to reduce air pollution in German cities, but it was not yet clear how drivers would be spared the bill.

Volkswagen (VOWG_p.DE), Germany’s largest carmaker, has agreed to cover 2,400 euros ($2,780) of the estimated 3,000-euro cost of hardware retrofits on its diesel cars, Scheuer said on a live video chat on Instagram.

“Now we have to discuss in the coalition how we handle the gap of 600 euros,” he added. Scheuer has sided with carmakers in calling for incentives for owners of older vehicles to trade them in for newer models. Svenja Schulze, a Social Democrat (SPD), favours hardware retrofits that are unpopular with auto makers.

A statement after the talks tersely promised a “concept for clean air in our cities,” while an unexpected pledge to build more wind and solar energy plants hinted at the horse-trading that took place as the three awkward partners struggled to unite around a common position.

The past few weeks have seen support slide to all-time lows for both Chancellor Angela Merkel’s conservative party and its Social Democrat (SPD) partners, as her government rowed over everything from diesel to immigration and the threat of far-right violence.

The marathon talks, which they promised would become a regular fixture, also yielded agreement on a new law promoting skilled immigration, they said.

The diesel compromise is likely to feature both trade-in incentives and retrofits. Scheuer said Volkswagen was willing to offer trade-in deals worth up to 8,000 euros, BMW (BMWG.DE) 6,000 euros and Daimler up to 5,000 euros, as well as leasing options.

One complaint of German carmakers is that foreign rivals would not be covered by any requirement for retrofits. Volvo of Sweden said it was not working on any such upgrades, but is looking at incentives to encourage customers to trade in diesels for newer, cleaner cars.

That option is also being considered by several other foreign carmakers, said Reinhard Zirpel, head of the VDIK car importers’ association. “We have legal, technical and business reservations about hardware upgrades,” he told the Tagesspiegel daily.

Source: Reuters

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