German Government considering creation of joint-fund with automakers to retrofit diesel cars

German Government considering creation of joint-fund with automakers to retrofit diesel cars

German news magazine Der Spiegel has disclosed in a recent report that the German Government is mulling a proposal for the creation of a new joint-fund with the automakers in the country for funding the retrofit of diesel cars. The objective behind the proposal is to lower emission levels in the country and help automobile companies to shift to electric vehicles segment. Automobile sector is important for German economy and provides considerable number of jobs in private sector in Germany.

The report about the new joint-fund under consideration by the German Government comes against the backdrop of a recent ruling by the country’s top court that local authorities interested in reducing pollution can ban select types of vehicles from their roads.

According to the report, the retrofit of diesel cars will make it possible for the country to avoid the ban of diesel cars at the regional or city level. The proposed joint-fund will cater for the expenses of the diesel-car retrofits in the country, and will ensure that the cost of the retrofits is not borne by companies that sell the diesel cars.

Although Der Spiegel report has not shared all the details about the proposed joint-fund, it has revealed that a contribution of €5 billion ($6.13 billion) may be sought from the automakers for the fund which would also comprise government payments.

However, a spokesperson for the country’s VDA auto industry lobby -- which represents bigwig automakers like BMW, Volkswagen, and Daimler -- has stated that VDA presently does not have any knowledge of the joint-fund proposal.