Volkswagen has extended its scrappage incentive program in Germany up to the end of March 2018.

Since the program was introduced in mid-August, incentives have already been granted for about 70,000 new cars and employees' cars up to 1 year old with a clean, efficient Euro 6 engine. The purchasers each scrapped an old diesel meeting exhaust emission standards Euro 1 to Euro 4. Furthermore, the Volkswagen brand has taken a key step forward in the transition to e-mobility. In connection with the environmental incentive, about 8% of new car buyers opted for an electric vehicle, about four times more than was previously the case. High demand for the e-Golf has led to the introduction of a second daily shift at the Transparent Factory in Dresden.

"The environmental and future incentives have been very well-received by our customers and dealers," says Thomas Zahn, head of Sales and Marketing Germany of the Volkswagen brand. He adds: "Volkswagen is making a key contribution to improving air quality in our cities. It is therefore the right decision to extend this successful program."

There have been slight adjustments to the conditions for the incentives from 1 January 2018:

Environmental incentive for models

  • up! - EUR2,000 (US$2,368)
  • Polo - EUR3,000
  • Tiguan, Tiguan Allspace - EUR4,000
  • Golf, Golf Sportsvan, Golf Estate, Touran, Beetle Cabrio - EUR5,000
  • Passat Sedan/Estate, Arteon, Sharan - EUR8,000
  • Touareg - EUR10,000

Employees' vehicles up to 1 year old with Euro 6 engines continue to be eligible for an environmental incentive corresponding to 75% of the figure for a new vehicle. The additional future incentive for especially environmental compatible alternative powertrains remains unchanged:

  • Natural gas - EUR1,000
  • Hybrid - EUR1,785
  • Electric - EUR2,380

Both incentives can be combined with the state purchasing incentive for electric vehicles introduced in July 2016. Including the state subsidy, a total incentive of up to EUR13,070 (example: Passat GTE2) is possible.

To meet higher demand for the e-Golf, production capacity at the Transparent Factory is to be increased. From March 2018, production is to increase step-by-step from 35 to 70 vehicles per day. The plant will switch from single-shift operation to 2-shift operation in the course of this change.

The previous conditions for the environmental and future bonuses continue to apply until 31 December 2017. From 1 January 2018, applications for incentives subject to the new conditions may be made to any authorised Volkswagen dealer in Germany.