France will gradually align taxes on diesel and gasoline and offer incentives to encourage consumers to swap diesel cars for electric models.
The government will pay a bonus of as much as 10,000 euros ($11,422) to consumers who buy an electric car to replace an old diesel vehicle starting in April, Energy Minister Segolene Royal said.
Speculation that gas guzzlers face a resurgence thanks to falling fuel prices is a ‘schoolboy error’, according to CAP Automotive, the independent motoring cost information experts.
High road tax for less efficient engines continues to outweigh any possible savings in fuel, despite pump prices falling to a five-year low.
Volkswagen Commercial Vehicles has unveiled the fourth-generation of its hugely popular Caddy.
It gets new engines and comes to the UK towards the end of 2015.