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Restraint and their consequences

Published 02 April, 19

Since the so-called “Dieselgate” a lot has happened and also a lot has not. However, some things could have been prevented.

Above all, the restrained position of the German government has contributed to the fact that even today diesel vehicle owner does not know how the future will look like for them. Only one thing they know for sure: their diesel cars decreased in terms of residual value and interest in buying a new diesel has dropped to a record-low that has not been known for a long time.

There are two main situations that have been problematic since the diesel scandal. First, customers purchased a product that did not meet the specifications that have been promised. And second, that diesel vehicles are supposed to be responsible for a large proportion of particulate matter limits exceeding in many cities.

On the first point, the general view is that a customer who has purchased a product should not ultimately be held accountable for inadmissibility or a defect. Especially if there is a legal situation, which states that an alleged rework exposes the claim to a lawsuit. Even if the actual damage is much higher than the cause of the potential fix itself and in the worst case, a decommissioning of the vehicle threatens. But this topic is far more complicated than the second aspect in connection with the diesel issue.

Due to the complaints of the Environmental Action Germany (Deutsche Umwelthilfe), which filed lawsuits as particulate matter limits set by the EU have been exceeded in Germany, the possibility of diesel bans started to be discussed. Above all, this topic has accelerated the rapid decline and decreasing acceptance of diesel. And that is precisely where the Federal Government would have had to position itself clearly from the beginning, in order not to create a vacuum of insecurity.

The issue of exceeded limits is obviously more complex than expected. The impact of diesel vehicles on exceeding the particulate limits appears to be less strong than expected. Particulate matter is also caused by new diesel and gasoline engines and their tyre and brake wear but also general public transport emits particulate matter, chimneys, coal, oil and gas heating contribute as well as local industry, agriculture or electric power generation (such as coal-fired electricity).

In particular, cities where a lot of shipping traffic takes place on rivers or in ports, are also burdened with high particulate matter emissions. The weather with high and low-pressure areas, winds and rainfall also influence how high the measured local emissions are. However, the most significant finding is that the measured limits in cities, which have already introduced driving bans, have not yet improved significantly. It requires a longer observation period to show if the measure was effective. However, the damage to customers has been real and proven since the beginning of the diesel scandal. Not to mention that at the present time, a widespread control of vehicles with Euro 5 or less classification in the ban areas is very labour-intensive and time-consuming and an automatic license plate control in Germany is currently legally difficult to implement. About the shift of the alleged problem to places outside Germany, where many older diesel cars have been sold to, is received only to a small extent, although particulate matter does not stop at borders.

All this leads to one conclusion: if you had wanted to talk about driving bans, then it would have made sense to talk about a general ban on driving or a reorganisation of transport in specific areas. Not one that penalises a particular group of motorists. Thus, one would not even have conjured up the loss in value of diesel vehicles, but kept the discussion at the level where it belongs. Also, owners of old diesel vehicles seem to be the biggest losers in the debate. Although there are plans that have already been partially implemented for air pollution control, the German government is nevertheless lacking to provide a clear direction towards the future and consumer protection. What will follow? Higher taxation of old diesels? Further exclusion of diesel or even gasoline cars from the cities?

At least now it would be time to learn from the mistakes made and to give the millions of car owners faith about the future and to position themselves clearly.

In particular, the German government, which made purchasing a diesel with their tax benefits and other incentives very attractive to customers in the past, it would have been mandatory to protect them from damage. Instead, there was not enough proactive action to give confidence and faith to diesel owners.

It is to be hoped that in the future there will be a clearer positioning, which consistently includes a holistic approach, initiates the fundamentally important foundations and does not further fuel insecurity and panic. Because everyone benefits from cleaner air, it is completely beyond dispute that any measure that significantly improves air quality should also be carried out. But it should be avoided to do this on the back of those who have bought a vehicle in good faith.

Written by: Max Müller

Future Car Values – Germany

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