VW offers rebates in Germany to trade in dirty diesel cars

The incentives are among pledges that German automakers made at a meeting last week— Reuters picThe incentives are among pledges that German automakers made at a meeting last week— Reuters picBERLIN, Aug 8 — Volkswagen AG is offering as much as €10,000 (RM50,625) to drivers in Germany willing to trade in older diesel cars for a newer auto, intensifying a push to get aging vehicles off the road amid intensifying crackdowns on emissions.

The namesake VW brand is offering €2,000 to buyers of a new Up! city car and as much as €10,000  toward a Touareg sport utility vehicle, the division said Tuesday in a statement. The incentive applies to trade-ins of models from any manufacturer. Rebates at Volkswagen’s upscale Audi nameplate range from €3,000 to €10,000 , and the Porsche sports car marque is providing a €5,000-euro reduction Europewide on four-door models like the Cayenne SUV or Panamera coupe.

The incentives are among pledges that Volkswagen and other German automakers made at a meeting last week with political leaders aimed at preventing large-scale limitations to a technology plagued by emissions-test scandals and air-quality concerns. The manufacturers agreed to update pollution-control software on as many as 5.3 million diesel cars, a project estimated to cost 500 million industrywide, and to take trade-ins of older models that can’t be upgraded.

VW’s sales chief Juergen Stackmann declined during a conference call today to specify how much the incentives will cost, beyond saying they’ll involve a “substantial million-euro amount.”

Daimler AG’s Mercedes-Benz brand has yet to announce terms for trade-ins. BMW AG is offering as much as €2,000 if buyers switch from an older diesel car to an electric vehicle.

Fading Market

Demand for cars with diesel engines is declining in several as regulators step up scrutiny of emissions rules to improve air quality. advocacy group Deutsche Umwelthilfe, a fierce critic of diesel cars, won a court case last month seeking broad bans on the models in Stuttgart, the hometown of Daimler and Porsche.

VW Chief Executive Officer Matthias Mueller confirmed last week the manufacturer is arranging software fixes for as many as 4 million diesel cars in Germany across all of the group’s nameplates, including about 2.5 million VW-brand cars that were part of a mandatory recall.

Frankfurter Allgemeine Zeitung reported earlier Tuesday Porsche is looking at whether to stop offering diesel versions of its cars starting with the next generation of the Cayenne SUV, which it will unveil later this month. A decision hasn’t been made yet, a Porsche spokesman said by phone.

The trade-in terms are valid through the end of the year for models meeting Euro 1 to Euro 4 emission standards, which have now been supplanted by Euro 6 regulations. The group’s commercial-van division is also offering as much as €10,000 for buying its Multivan model, while the Czech unit Skoda is providing as much as €5,000. — Bloomberg

Source: The Malay Mail Online

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