Diesel fuel tax on home turf is blow to VW
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Volkswagen Group of America, which moved its headquarters from Michigan to Herndon, Va., in 2008, isn't feeling the love from its adopted home state.
To deal with a funding shortage for highways, the Virginia legislature passed a bill that will replace the state's current fuel tax of 17.5 cents per gallon with a 3.5 percent tax on gasoline and a 6 percent tax on diesel fuel.
The move was an effort to add revenue from heavy-duty trucks, which damage roads more than cars do. And it frustrated VW, the loudest advocate of bringing European-style diesel cars to the United States.
"The sticker shock at the pump will reduce future clean-diesel sales, impeding our ability to meet our greenhouse gas obligations under federal law," VW wrote in an e-mail sent to every member of the Virginia House of Delegates.
But the bill passed and was signed by Virginia Gov. Bob McDonnell. As a concession, drivers of diesel cars will get a rebate, but Volkswagen says consumers still will see a big difference in price when they drive past gas stations.
