Volkswagen Discounting New Cars for Diesel Owners in Germany
Volkswagen may discount new car purchases for diesel car owners trading in their illegally polluting cars, German news agency DPA ( via Reuters) reported.
The discount would apply to older 1.6-liter models, according to the report, which would need more significant fixes than many other cars. According to Reuters, roughly 2.4 million cars in Germany are affected by the diesel scandal that has cost the automaker billions so far.
In America, more than 350,000 diesel cars would need significant fixes, according to Volkswagen of America chief Michael Horn. In the States and Canada, Volkswagen offers a “loyalty discount” to returning Volkswagen buyers. So far, the diesel discount only applies to cars in Germany.
Volkswagen in Germany didn’t respond to DPA’s report.
Manager Magazin, a German business publication, said that the automaker expects that it would take from 90 minutes to five hours to fix some of its older cars, which could take months with dedicated staff. The publication estimates that Volkswagen may offer a significantly higher trade-in value for their illegal cars, which are currently plummeting, and some other form of compensation.
So far, Volkswagen hasn’t announced in the States how it would fix its 482,000 illegally polluting cars nor if it would consider any compensation for owners of the cars.
More by Aaron Cole
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It will be interesting to see what VW does with the trade-in diesel cars. The first few might be used to test out their fixes, and the rest? Will they get crushed, fixed up and resold, or exported as-is to Africa?
My 2 cents is if VW USA goes this route the cars never get fixed and exported, VW will get something from them in another part of the world, they make their TDI owners ( of which I am one ) happy with a increased trade in and they keep their NA plants running, I do not see dealers retrofitting the cars and taking the chance the market is not there for them to make money. I assume the EPA would make sure a dealer had to fix the car before it went to auction or was resold by another dealer, this may not be the case if the car trades hands without a dealer. Not sure how many TDI drivers would want to trade in their cars for their gas version, one of the things TDI drivers love is the amount of miles you get in a tank.
A smoking deal!
Do something environmental VW, strip the carcass build new ocean reefs with the bodies.