Iceland allocates 510 million krónur for electric truck subsidies amidst dealer scrutiny

The Icelandic government has recently allocated 510 million Icelandic krónur in subsidies for the purchase of electric trucks. A significant portion of these funds is directed towards two car dealerships, Brimborg and Öskja, with Brimborg receiving over 100 million krónur from the total. This dealership has come under scrutiny following a recent transaction involving a Volvo vehicle for Halla Tómasdóttir, the President of Iceland.

The subsidies aim to encourage environmental protection and facilitate the transition to electric vehicles in commercial operations. A total of 87 vehicles will be funded through these grants. However, concerns have been raised about the distribution process of these subsidies. Critics argue that dealerships like Brimborg and Öskja have dominated the applications for these funds, limiting opportunities for other companies. Björn Kristjánsson from the Icelandic Automobile Owners Association suggests that the government could have better publicized the subsidies to allow more entities to apply.

There are also questions about the appropriateness of funding certain vehicles, as some are not true commercial trucks but rather light-duty pickups with limited cargo capacity, potentially leading to minimal fuel savings.

Environment Minister Guðlaugur Þór Þórðarson recently introduced the grants, emphasizing their role in promoting a greener transport sector. Despite the announcement, the related press release garnered little attention. Furthermore, it has been confirmed that no inspections of the applicants for these grants were conducted, raising further concerns about the integrity of the subsidy program.