Carmakers Offer to Buy Back New Diesels Banned by German Cities

BMW AG, Skoda and Volkswagen Group brands are offering to buy back new diesels they sell beginning next month if German cities later decide to ban the engines, Automotive News Europe reports.

VW’s program supplements deals for customers who trade in an older diesel model for a new one. ANE notes that Audi, Fiat Chrysler Automobiles, Ford and Opel are among other carmakers that are offering sales incentives to prop up demand for diesels.

Germany auto industry group ZDK says that one-third of dealers polled in Germany say they have been forced to discount previous-generation Euro 5-spec diesels by 30%-50% because of slumping consumer demand.

Diesel sales have been shrinking since VW admitted in 2015 of manipulating diesel emission controls in 8.5 million European vehicles to evade emission limits. Diesels now account for about one-third of new-car sales in Germany, a low point seen only once in the past 18 years.

Orders have dried up further this year after a German court ruled in February that cities have the right to ban diesels if necessary to address air pollution requirements.