AM Online

Now Sweden targets SUVs

Sweden is heading for a showdown with its flagship Volvo brand over gas-guzzling sports utility vehicles, as the political backlash against them spreads across Europe.

Stockholm’s minority government is being pressed by its Green and Left party partners to levy a tax on drivers of SUVs that could add up to SKr60,000 (£4,400) to the price of Volvo’s XC90, the country’ s biggest single export.

Volvo says the move would sacrifice 600 new jobs it is planning at its Gothenburg factory. Authorities in several countries are considering similar plans. French officials are finalising plans to tax polluting vehicles, particularly SUVs. London mayor Ken Livingstone is studying measures to combat SUVs.

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