Volkswagen has followed broadly along the lines of its German rivals BMW and Daimler in announcing software updates, trade-in incentives and a contribution to a mobility fund following an emergency summit on diesel vehicles in Berlin last Wednesday (2 August).

Volkswagen said a trade-in incentive for Euro 1 – Euro 4 diesel models from all group brands was planned – BMW and Daimler have announced more specific details.

There will also be a Europe-wide software update for Euro 5 and some Euro 6 diesel vehicles from group brands.

The company will make an unspecified "significant contribution" to the German sustainable mobility fund for cities.

VW chief Matthias Muller said in a statement: "Our comprehensive package of measures will significantly reduce NOx emissions and significantly improve air quality."

"With the incentive to trade in their vehicles we are giving our customers strong motivation to switch to a modern, more environmentally compatible vehicle powered by an internal combustion engine or an alternative drivetrain technology", Müller said. "This incentive can be implemented quickly and will have a swift, quantifiable and sustained effect on significantly reducing NOx emissions and significantly improving air quality."

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In Germany, the group will install a software update on 4m Euro 5 and some Euro 6 diesel vehicles. This includes the 2.5m vehicles already recalled, of which more than 70% have already been done.

The software update will be offerer Europe-wide and VW claims NOx emissions from Euro 5 and some Euro 6 diesel vehicles could be reduced by an average 25% to 30%.

The German auto industry and federal government will each contribute EUR250m to the sustainability find.

"The Volkswagen Group's contribution to the fund will be proportionate to its market share in Germany and will therefore represent a substantial amount," the automaker said.