Report – VW mulling discounts for owners of dieselgate affected cars in Germany

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According to a senior executive source that talked to Reuters under condition of anonymity, Volkswagen is mulling discounts to its German clients that purchase a new vehicle if they trade in certain older autos affected by the emission rigging scandal. The source further pointed out the company was envisioning a broad range of measures aimed at securing deliveries – including incentives for dealers that buy back older cars or cheap loans – though no decisions have been made yet. Europe’s biggest carmaker has been engulfed into the company’s largest crisis in its 78-year history after admitting last month to having software in its cars that can rig US diesel emission tests about real world pollution levels. It also acknowledged up to 11 million autos around the world had been equipped with the illegal software and prompted by German authorities decided to recall 8.5 million autos in Europe. Some of those models will simply need a software patch to be up to speed with regulations but cars with 1.6 liter engines would also need costly hardware modifications. Confirming an initial report from German news agency DPA, the person said the measures could specifically target those cars. “The need to take action will arise if we see an impact (on vehicle sales),” commented the person. “To date this has not been the case.” Sales at VW AG, which has 12 brands that sell anything from motorcycles to heavy trucks or supercars, have gone down last month by 1.5 percent to 885,300 units, with the same decrease registered for the first three quarters of the year, with deliveries totaling 7.43 million autos. Via Reuters