Published: Sun, April 01, 2018
Finance | By Kristine Clayton

Diesel graveyard: Volkswagen dumps thousands of cars in desert after emissions scandal

Diesel graveyard: Volkswagen dumps thousands of cars in desert after emissions scandal

Buyback offers will available if the city where the buyer lived banned diesel vehicles within 3 years of the purchase. If the vehicle owner is hit with a ban on driving at work or at home, the auto could go back to the dealer for a non-banned model. However, diesel cars are speculated to be automakers' attempts to meeting EU's new norms on carbon dioxide emissions, as diesel cars are less hazardous than gasoline vehicles.

The automaker has so far spent $7.4 billion reacquiring about 335,000 of the roughly 500,000 vehicles that it agreed to repurchase owners as part of a settlement with the federal government for engineering the diesel-powered models to cheat on emissions tests.

Now the buy-back scheme will only apply in Germany to begin with, but it could expand outside the country in future.

But Dieselgate has cost VW an arm and a leg, with the cost of being compelled to buy back some 350,000 diesel-engined cars in the USA alone costing the German firm more than £5 billion.

German carmaker Volkswagen said it would offer to buy back diesel vehicles if German cities ban them and also extended incentives for potential buyers of diesel cars to battle a slump in demand.

That means loyal Volkswagen customers could be incentivised to replace not one but two vehicles in a matter of months using different schemes.

VW's Germany Guarantee will apply to the purchase of a new or year-old diesel vehicle purchased through a VW dealership from April 1 through the end of 2018.

The German firm has agreed to buy back about 500,000 U.S. vehicles in all following the scandal over diesel emissions.

The decision was seen as a huge blow to the motor industry and Chancellor Angela Merkel's government, which had resolutely opposed the notion of a ban in the lead up to the verdict.

Diesel auto sales slipped by 19 per cent in Germany last month during the build up to the federal court's decision - and registrations are expected to plunge in March once figures are released in the next week.

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