VW and Daimler agree to pay for diesel fixes in Germany

Volkswagen and Daimler have agreed to pay up to €3,000 per vehicle to fix diesel vehicles on their home market.

Modifications vs trade-ins

Transport Minister Andreas Scheuer said BMW is still refusing to do more than offer trade-in discounts. The carmaker from Bavaria insists retrofitting is the wrong path to follow and it is a better plan to entice drivers to buy new cars.

On top of the hardware modifications, Volkswagen and Daimler are also offering trade-in deals.

The agreement with Volkswagen and Daimler applies to older diesels on the road in the fifteen most polluted cities in Germany.

Mr Scheuer is reported to be in talks with foreign carmakers who his government feels should match the efforts of Volkswagen and Daimler on the diesel issue.

More city bans

Earlier this month, the Cologne Administrative Court ruled in favour of the German environmental group DUH, agreeing that diesel emissions from older vehicles were in large part to blame for poor air quality and would therefore have to be banned in the cities of Cologne and Bonn from April 2019.

"It will cause disruption for the transport infrastructure of the city of Cologne and have a significant impact on residents, commuters and the whole of Cologne," said State Environment Minister Ursula Heinen-Esser in a reaction.

Image: Volkswagen factory in Wolfsburg, Germany