VW Begins Scrappage Plan in U.K. for Old Diesels

Volkswagen AG has begun offering customers in the U.K. as much as $9,100 to trade in older diesel-powered Audi, SEAT, Skoda or VW brand passenger vehicles on new models.

The incentive applies to owners of diesels that were registered before 2010 and are equipped to meet Euro 4 or earlier emission standards. The scheme is similar to one VW launched in August in Germany that pays as much as €10,000 ($11,900) on a replacement car.

Toyota Motor Corp. also began a diesel scrappage plan in the U.K. today. That program pays its diesel customers as much as £4,000 ($5,200) to trade in their old diesels.

The incentives began in German and are spreading to other markets. European carmakers are using the plans to revive fading consumer interest in diesels that began two years ago with Volkswagen’s diesel emission cheating scandal.

Demand for diesels sagged further this year as evidence emerged to show that mulitple manufacturers have been using loopholes in EU emission standards to put cars on the road that significantly surpass emission limits in real-world driving conditions.

Carmakers are accelerating a switch from diesels to hybrid and all-electric powertrains. But they say in the meantime they will still need strong sales of their latest “clean diesels” to meet EU standards for carbon dioxide emissions.