Volkswagen, Daimler and BMW have agreed to upgrade around 5m newer diesel cars in Germany and offer trade-in rebates on older models, avoiding more costly remedies in a bid to salvage diesel technology and avoid driving bans in cities, a media report said.
According to Bloomberg, the deal, hashed out at an emergency summit in Berlin on Wednesday, largely holds to commitments the automakers had already made and allows them to avoid expensive hardware recalls, which would have ballooned costs. About half the recalls had already been carried out as part of Volkswagen’s response to its cheating scandal. The agreement also includes automaker participation in a fund to promote sustainable transport in cities.
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The manufacturers agreed to absorb the costs of the upgrades, which they said would not reduce performance or affect fuel usage and durability, Bloomberg said.
Volkswagen will modify 3.8m vehicles, Daimler 900,000 and BMW 300,000.
The aim of the modifications, which also involve vehicles from PSA Group’s just-acquired Opel brand, is to cut emissions of nitrogen oxides by 25% to 30 % on average, the German auto industry lobby VDA said in a statement cited by Bloomberg.
“Our goal is to improve diesel rather than ban it,” Daimler CEO Dieter Zetsche said in a statement emailed to Bloomberg. “As long as e-cars still have a small market share, optimising diesel is the most effective lever to reach climate targets in road transport.”
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By GlobalDataEarlier report: German automakers pleading diesel’s case
