By on October 26, 2015

Volkswagen Polo

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.

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7 Comments on “Volkswagen Discounting New Cars for Diesel Owners in Germany...”

  • avatar

    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?

    • 0 avatar
      George B

      In the US, Volkswagen the manufacturer will provide cash incentives to their customers, Volkswagen dealers, to sell new gasoline engine Volkswagen cars. The Volkswagen dealers are independent businesses. Dealers may retrofit TDI models if the manufacturer pays for it and the retrofit doesn’t destroy the resale value. Otherwise, TDI models go to auction where they get sold as-is. Some will likely be exported.

    • 0 avatar

      I’m curious as well, although I don’t think the Africa scenario that you suspect is possible. I’m not an expert on this but I suspect that the majority of cars exported to Africa are older than even the VWs in question. Apart from that, Africans seem to prefer cars that hold up well under deferred maintenance (or total lack thereof); look at some photos of Western African (as that would be the most likely destination) streets and you’ll see plenty of Toyotas, older Benzes, Opels and Peugeots. I don’t think the Africans are likely to warm up to overengineered, fragile VW diesels whose injection systems are bound to clog up at the first sight of African fuel.
      It’s much more likely that those VW will end up being sold to Eastern Europe (through some intermediary, of course). I live in Poland and believe me, nobody really cares about particulates and NOx emissions here (and emissions testing for used cars is not really enforced). In addition to that, VW diesels are held in very high regard and are invariably among the most commonly imported cars (VW is a perennial, undisputed number 1 and Audi is always in the top 5, with diesels outnumbering the gassers several times over). Couple that with the fact that over 700 thousand cars are imported every year into Poland only and it becomes apparent how some of those problematic VWs might end up here. And, like I said, nobody here cares about emissions, so the history of these cars is unlikely to repel any possible buyers.
      Bear in mind that Poland is only one of the Eastern European countries which might scoop up those TDIs. Add to that Ukraine, Belarus, Romania, Lithuania etc. and you will see that there is a significant market for the problematic vee-dubs. I think all that VAG needs to do is find some intermediary that they would sell these cars to to cover their ass, and let said intermediary dump them to Eastern Europe by reselling them to private importers; believe me, the demand for cheap VW diesels here is huge, with cheating devices or not.

      • 0 avatar

        I saw that when I was in Germany, right after they did their version of cash for clunkers. The German clunkers weren’t destroyed, they were all exported east. The result was that almost every car we saw in Germany was new. This also explained the 80% diesel fleet. The range was from cheap new to high end new, but they were all new. The only older cars I saw were clearly someone’s special toy.

        I note that both the original post and the TTAC repost…no one mentions what the incentive is….a free oil change ? A free “multipoint inspection” ? Actual money ? I have a TDi, so I’m actually interested in VW’s opening bid.

  • avatar

    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.

  • avatar

    A smoking deal!

  • avatar

    Do something environmental VW, strip the carcass build new ocean reefs with the bodies.

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