"Environmental premium and exchange": the old diesel should disappear: VW offers discounts for scrapping

Scrapping program instead of modernization of equipment: to avoid driving bans, Volkswagen is restoring reductions on the disposal of old diesel – all over the country and not only in the 14 most affected cities. However, according to experts, there is a trap.

As part of the fight against imminent driving bans, Volkswagen now wants to take over the old national diesel with the emission standards Euro 1 to 4 for discounts and scrap.

By taking over the models from all manufacturers, buying a new car or a used second-hand vehicle will come with a discount, VW said. Like other automakers, VW had already offered an "environmental bonus" as part of the diesel summit of August 2017 from last year.

The industry expert, Ferdinand Dudenhöffer, has estimated that part of the reductions on the disposal of old diesel should be offset by the previous reductions. Jürgen Resch, managing director of German environmental aid, criticized a "senseless understanding of longevity".

Resch talked about the cuts provided for "one way cars", which are only valid for the validity of an emissions standard. In the case of a damaged brake, it would be quite clear that only the repair will be performed, he said. Anders in the case of diesel: "Here is a new car to buy." Resch reiterated its request for modernization of equipment for the old diesel exhaust gas cleaner. Mr Dudenhöffer also warned that ecologically better was a national solution for modernization of equipment.

Volkswagen has announced that the amount of the discount would depend on the model chosen from the brands of the Audi group, Seat, Skoda and VW – up to 10,000 euros are possible. In the 14 particularly polluted cities, owners of Euro 4 and Euro 5 diesel cars should benefit from rebates, which would be granted in addition to the residual value. VW itself speaks of "environmental premium and exchange". A spokesman said that traders would still be able to combine the rebates removed from the list price with other discounts.

This makes Volkswagen an "important contribution" to improving air quality, said Christian Dahlheim, sales director of the group. The diesel concept recently introduced by the Federal Government proposes exchanges and adaptations of equipment for Euro 5 diesel in order to improve the air in highly polluting cities. Automotive expert Stefan Bratzel criticized the fact that the federal government's missing global concept would now be avenged, which would cause discontent.

Dudenhöffer has not ruled out that some VW discounts are offset by previous discounts and that "sales promotion programs" are reduced. As a standard discount when buying a new car, discounts ranging from 12 to 15% are common. Until now, in the so-called "exchange premium" for dirty diesel, the remaining discounts were all still offered.

According to VW, the environmental premium from August 2017 to June 2018 put more than 210,000 old diesel engines off the road and eliminated them in the entire group. Constant fleet renewal is a fast and effective way to improve air quality.

The main brand Volkswagen Passenger Cars offers discounts ranging from 1,500 to 8,000 euros depending on the model – to the scrap of a diesel vehicle Euro 1 to Euro 4. In addition, a "bill of exchange" between 500 and 700 € will be paid in the case of a diesel of 4 or 5 € plus the residual value in the 14 cities specified by the federal government. Audi proposes a reduction between 3,000 and 10,000 euros and the VW division of light commercial vehicles up to 8,000 euros.

Dudenhöffer talked about the action of a "stimulus program" for the sector – Volkswagen is trying to absorb the decline in sales. In any case, the share of diesel in new cars sold has been declining for a long time. In addition, global VW group shipments collapsed in September due to the apparent introduction of the new exhaust gas testing method, WLTP. Bratzel said at discounts: "It helps anybody who wants to buy a new car and can afford it anyway."

Previously, Daimler had mentioned the details of the reductions for diesel vehicles of all brands meeting the Euro 1 to 4 emission standards as well as Euro 5 in the "priority regions". They vary between 3000 and 10 000 euros depending on the model. According to a national spokesperson since August 2017, when buying a new vehicle, a "value adjustment" of € 2000 granted to Euro-1 vehicles to Euro-3 was granted, provided that they are discarded. In addition the discounts would come. Nationwide, Mercedes-Benz offers a reduction of 2000 euros for diesel emission standards from Euro 1 to 4 standards.

BMW wants to grant diesel drivers a discount of up to € 6,000 on the purchase of a new car in the 14 regions particularly contaminated with nitrogen oxides, if they replace a diesel engine up to 5 €. Throughout the country, there are still 2000 euros. Foreign manufacturers rely mainly on national programs.

Renault is proposing the purchase of the most expensive new cars up to 10,000 euros discount, if a diesel is awarded at 5 euros standard. With Ford up to 8000 euros, with Fiat up to 6000 euros. The brands of the Opel PSA dam – alongside the Russelheimers as well as Peugeot and Citroën – currently offer no specific bonus for the exchange of old diesel.

The spokesman for left-wing transport, Ingrid Remmers, commented on these discounts on a joke: "We do not need additional incentives to buy diesel vehicles, but rather many hardware upgrades."

Green leader Annalena Baerbock told Handelsblatt: "Ecologically, it is absurd to scrap cars instead of repairing them." This is an incentive for the industry to sell new burners. Federal Minister of Transport Andreas Scheuer (CSU), however, provided incentives to buy, 1.4 million cars and a volume of 7 billion euros, he said.