Combustion engines to narrow the gap

VW needs money. This has become very clear in the current discussions about the company's situation. There is talk of plant closures and further cost-cutting measures, but also of price increases. The models with combustion engines should bring more money into the coffers. As co-owner of VW, the state of Lower Saxony is calling on the federal government and Europe to provide concrete incentives to buy electric cars.

In an interview with the "Hannoversche Allgemeine" newspaper, Lower Saxony's Economics Minister Olaf Lies (SPD) called for a reduction in VAT for electric cars or a tax credit. In addition - according to Lies - the price of electricity must fall. Minister President Stephan Weil had previously advocated the reintroduction of the purchase premium in another interview.

A revival in electric car sales reduces the risk of high fines being imposed on Brussels if a manufacturer fails to keep the average CO2 values of its models below the EU fleet limit. Given the current sales trend, this can hardly be achieved. This is presumably the background to the demand by the head of the FDP parliamentary group in the Bundestag that the state should ensure that fleet regulation is abolished. The CDU once again called for an end to the EU's ban on combustion engines from 2035 and wants to focus on climate-friendly e-fuels. For the AfD, its parliamentary group leader in the Lower Saxony state parliament, Sebastian Lechner, stated: "Volkswagen is dying the electric death".

Volkswagen intends to significantly increase prices for almost all VW brand passenger car models with combustion engines, as the magazine "kfz-betrieb" was the first medium to report, citing a letter from the Wolfsburg-based company to its German dealers. Individual equipment options are also to become more expensive.

According to the letter, the highest surcharge of just under 2500 euros will be for the newly updated Touareg SUV, while the smallest increase of around 500 euros will be for the small Taigo and T-Cross crossovers. The best-selling Golf and Tiguan will each be around 1100 euros more expensive. At around four percent each, the increase will be the highest in relative terms. The Polo small car is the only combustion engine that will not be affected by the price increase. (aum)