Volkswagen CEO Really Wants the Good Old Days Back, Predicts Diesel Resurgence

Despite a multi-billion-dollar emissions scandal, a massive corporate black eye, and all signs pointing towards a future devoid of diesel passenger cars, Volkswagen Group CEO Matthias Müller isn’t willing to let go of the past.

While addressing media at the the Geneva Motor Show, the VW boss — perhaps angered by all the newfangled electric cars in attendance, one of which is a Volkswagen — predicted the public would soon realize the error of its ways and return to the comforting arms of diesel propulsion. There’s a renaissance on the way, he said.

However, the fly in Müller’s soothing ointment appears in the form the The Government and the industry’s (and public’s) inclination to go where the incentives are.

“Diesel will see a renaissance in the not-too-distant future because people who drove diesels will realize that it was a very comfortable drive concept,” the top executive told the crowd. “Once the knowledge that diesels are eco-friendly firms up in people’s minds, then for me there’s no reason not to buy one.”

Indeed, there’s plenty to love about compression ignition. Diesel powerplants offer gobs of low-end torque and glorious fuel economy — even with the car’s emission controls in the “on” position. But there’s a problem. To enjoy the diesel car lifestyle, those vehicle must first be affordable, available, and — ideally — legal to drive.

Across the globe, automakers have read the writing on the wall are busy phasing out light-duty diesels in favor of investment in electrification — Volkswagen Group included. Porsche has all but sworn off the fuel, while VW Group doesn’t even bother with diesels in North America anymore. For some companies (Infiniti and Mazda, mainly), near-future success lies in developing ultra-efficient gasoline engines.

European diesel sales sank nearly 8 percent in 2017. At one point early this decade, oil-burners made up more than 55 percent of the continent’s new vehicle sales, spurred by tax incentives created by governments seeking greater fuel economy. Now, those governments want to curb air pollution. As emissions standards become ever more stringent, regulators on both sides of the Atlantic are making damn sure automakers don’t try to pull a fast one. And whose fault is that? Right — Volkswagen’s.

The days of diesel incentives are coming to a close (VW’s apparently on board with the idea), and heavily taxed Europeans won’t take too kindly to further punishment at the pumps. Already, government incentives for electric or plug-in hybrid vehicles, coupled with a growing availability, have seen the region’s green cars sales soar (comparatively speaking). Battery electric vehicle sales rose 53.7 percent in the European Union in 2017. Of those countries, Germany — birthplace of the diesel engine — took to the electrified lifestyle in a big way, with a 119.7 percent increase.

Even with all of these factors working against the technology, there’s still another diesel assailant: cities. Local governments in western Europe are hopping on the “diesel ban” bandwagon like it’s a new dance craze, falling over each other in a rush to either ban the operation of diesel (or all ICE) cars, or at least levy fees within urban boundaries. The highest court in Germany says it’s completely legal for towns and cities to do so. Should an automaker go to the trouble and expense of developing the cleanest diesel engine in history, there’s still no guarantee a future buyer could even drive the thing in Berlin, Paris, or London.

Still, despite pledging $42 billion towards the creation of electric vehicles and self-driving technology, VW feels there’s still a need for diesel. Basically, it comes down to fuel efficiency vs. emissions. Gasoline engines spew less carbon dioxide per gallon of fuel burned, but gas-powered vehicles, especially heavy SUVs, burn more fuel covering the same distance.

“The rules of the game in the EU in relation to climate protection and emissions goals on CO2 are so challenging that governments cannot do without diesel,” Müller said.

VW brand chief Herbert Diess backed up this assertion, implying that electric cars aren’t ready to fill the void. “We need diesel to get to the CO2 goals,” he said. “Electric vehicles in many cases won’t keep frequent drivers happy.”

Based on these comments, it seems Müller’s diesel “renaissance” is, at best, more of a “longer goodbye.”

[Source: Bloomberg, via Automotive News Europe]