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Porsche: board for abolition of diesel subsidies

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Porsche: board for abolition of diesel subsidies

The Porsche headquarters in Zuffenhausen. © dpa Porsche is for the abolition of the diesel subsidies, according to circles of the board of the sports car manufacturer. Governing body members believe that funding should be better invested in electric vehicles and synthetic fuels. Porsche itself largely exited the diesel car business in 2019. One reason: the diesel scandal.

The carmaker Porsche is in favor of abolishing state subsidies for diesel cars, we learned from circles on the board. Members of the executive committee are of the opinion that the funding is no longer up-to-date in view of the Federal Government’s ambitious climate goals.

Anyone who fills up with diesel today pays less tax than on petrol. You currently pay 47 cents for a liter of diesel and 65 cents for petrol. This means that diesel fuel is 18 cents cheaper per liter. According to the Federal Environment Agency, the diesel privilege costs the state eight billion euros a year.

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According to the board members, the funding would be better used for e-cars and synthetic fuels. When it comes to subsidies, Germany and the EU are in competition with China and North America. In China, no purchase tax will be levied on e-cars until 2027. This subsidy will cost the Chinese government around 66 billion euros. With the Inflation Reduction Act (IRA), the USA has also created a generous subsidy program for electric cars and battery cell factories. The Stromer are funded there with up to 7,000 euros. However, one condition is that parts of the funded vehicles must be manufactured in the USA or Canada. The USA is also attracting European car manufacturers such as Porsche and Volkswagen. The President of the EU Commission, Ursula von der Leyen, has announced an answer to the lavish subsidies from America, but so far there is no European or German equivalent.

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According to Porsche board members, shifting diesel subsidies to more sustainable drives would be a first step. The first talks are said to have already been held at state level. The people of Stuttgart also believe that they can find a majority for the impulse in the Association of the Automotive Industry (VDA). Because the other German car manufacturers would also see the structural advantages in the USA, such as the subsidies or the energy price guarantee for the operation of battery cell factories, but still want to keep their production in Germany and also sell electric vehicles here. The EU and Germany must now follow suit, according to board circles of the car manufacturer Mercedes.

Porsche stopped producing diesel cars in 2019. A major reason for this was the diesel scandal. At that time, Audi supplied the sports car manufacturer with diesel engines, including cheat software. The head of the Porsche works council at the time, Uwe Hück, publicly said at the time that Audi had supplied “sick engines”. “We feel betrayed by Audi,” Hück told the “Bild am Sonntag” newspaper at the time. A little later, the diesel business at Porsche was passé.

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