Automobile: the painful conversion of diesel to gasoline



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"We can not see the pumps of the same eye." Until then, the low consumption of diesel allowed to space visits to the service stations but, if it is still true, the price to pay is now equivalent to that of the liter of gasoline ". Somewhat disillusioned, this diesel driver, long encouraged by the French executive to run on diesel, is seriously considering returning to gasoline. "Before it's too late and my car becomes unsellable," he says.

Faced with soaring diesel prices, owners of diesel cars feel trapped, the reversal of public policies causing a drop in the price of their vehicle.

For the diésélistes, "it is the double penalty", notes Flavien Neuvy, director of the Observatory Cetelem of the Automobile. "They are experiencing both rising fuel prices and a residual value of their car that is dropping sharply because the used diesel market is collapsing."

Diesel prices have almost reached the pump gasoline prices, under the effect of an increase in taxes to end the tax advantage that this fuel has benefited so far. As a result, these vehicles lose their interest and appeal, especially since they are perceived as having little future.

"In Paris, we know that diesels will be banned in 2024. There are many concerns," said Guillaume Paoli, co-founder and CEO of Aramis Auto, specialist in online car sales. According to a study commissioned by the company, "40% of diesel owners have planned to change their behavior, either by keeping their car until the end, or by trying to resell it as soon as possible".

But in case of resale, there may be disappointment. On diesel urban cars, "prices are clearly down, sometimes 10 to 15%," warns Mr. Paoli. The decline is less noticeable for large vehicles, but in all cases "resale times are a little longer".

He points out that the second-hand market is completely unbalanced. "Today's used cars are new cars from four years ago, but four years ago 70% of diesel was sold, and today when I look at the queries on the Aramis site, only 30 to 35% are diesel ".

On the new home market, the share of diesel also fell below 40% in September, against 73% in 2012.

"There is a problem of supply and demand, people want more gas and we do not necessarily have as much fuel to offer them," says Guillaume Paoli.

Turning 180 ° policies


The price reductions of diesel used cars "have been significant since the beginning of the year," confirms the National Council of Automotive Professions (CNPA), which represents dealers. Asked by AFP, he was not able to quantify the phenomenon.

In addition to the cost to individuals, the CNPA provides a slate "in billions of euros" for dealers, who must manage the returns of millions of diesel vehicles over several years, at the end of leases (LOA) of their customers. Dealers are already with a fleet of cars whose value is depreciated.

"The public authorities never take into account the existing fleet of vehicles," warns the CNPA, which estimates it to 42 million cars, two-thirds of them in diesel.

The French were encouraged by the government, until five years ago, to favor diesel in the name of the fight against global warming, recalls Flavien Neuvy.

These engines consume about 10% less fuel and therefore emit less CO2. But their less favorable record of emissions of nitrogen oxides, gases harmful to health, has prompted the government to completely reverse its policy since the law on ecological transition pbaded in 2014.

The dieselgate, with its revelations about Volkswagen's cheating and the systematic underestimation of harmful emissions during the certification tests, has been a blow to this technology.

Among consumers, "there is discontent, the impact is strong on the purchasing power, but there are also industrial consequences", with thousands of jobs threatened by equipment manufacturers specializing in diesel engines, says this expert. "It makes incredible shocks" to manage for an automotive industry that must make heavy investments and needs visibility above all else.

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