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Renault, PSA Challenge France’s Plan to Phase Out Diesels
PSA Peugeot Citroen and Renault SA say the French government's plan to discourage diesel-power passenger vehicles is ill conceived and won't improve air quality.
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PSA Peugeot Citroen and Renault SA say the French government's plan to discourage diesel-power passenger vehicles is ill conceived and won't improve air quality.
For years France has encouraged diesels through favorable tax rates on such vehicles and their fuel. Today about 80% of the country's passenger vehicles are diesel powered.
But now Prime Minister Manuel Valls describes diesels as "a mistake" and vows to replace them with gasoline and electric vehicles. He has not specified how that will happen.
Renault says the new government policy fails to recognize the significant reduction in emissions typical of today's "clean" diesel systems and therefore will have "no real environmental impact."
Renault and PSA are understandably concerned about the prospect of a drastic shift in government policy, since their vehicle powertrain lineups have been developed to align with the current pro-diesel policy.
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