Get all your news in one place.
100's of premium titles.
One app.
Start reading
Reuters
Reuters
Business
Matthias Inverardi and Michelle Martin

Volkswagen, Daimler agree to pay for diesel fixes

A fuel tank cap of a diesel car is pictured in Berlin, Germany, October 2, 2018. REUTERS/Hannibal Hanschke

COLOGNE, Germany/BERLIN (Reuters) - German carmakers agreed to spend up to 3,000 euros ($3,430) per vehicle to help reduce diesel emissions as the government and industry respond to driving bans in major cities.

While Transport Minister Andreas Scheuer and car bosses were hammering out a deal on anti-pollution measures in a five-hour meeting on Thursday, a court ruled that two more German cities, Cologne and Bonn, must impose bans on older diesel vehicles.

German Transport Minister Andreas Scheuer addresses a news conference in Berlin, Germany, November 8, 2018. REUTERS/Fabrizio Bensch

Volkswagen <VOWG_p.DE> and Daimler <DAIGn.DE> are prepared to offer hardware retrofits to clean up older diesel vehicles at their own cost, Scheuer said following the meeting, adding that rival BMW <BMWG.DE> was still refusing to do so.

But all three big German carmakers, including VW, were committed to spending up to 3,000 euros for various measures, including trade-in incentives.

Scheuer said they were all keen to press ahead with such incentives, which aim to convince customers to buy newer, cleaner vehicles that have lower emissions and would not be affected by driving bans.

The government has been pushing carmakers to shoulder more of the burden of retrofitting cars, though Germany's auto giants have been reluctant to take on more costs than necessary.

"Volkswagen, Daimler and BMW will make sure their customers can remain mobile," Scheuer told reporters, urging foreign rivals, like Fiat and Peugeot to match the efforts he said the German firms had made.

Scandals involving schemes to conceal the true levels of pollutant emissions from diesel cars has dealt repeated blows to the global reputation of Germany's car industry in recent years.

As the industry leaders were meeting Scheuer, a court in Cologne ordered driving bans in some parts of the city from next April, underlining the stakes for politicians concerned that a lack of progress could trigger deeply unpopular driving bans.

Environmental lobby group DUH had filed complaints against the western state of North Rhine-Westphalia, home to Cologne and Bonn, saying the cities needed to ensure their nitrogen dioxide (NO2) levels stuck to permitted limits and calling for a ban of diesel vehicles in those cities.

"It will cause disruption for the transport infrastructure of the city of Cologne and have a significant impact on residents, commuters and the whole of Cologne," said State Environment Minister Ursula Heinen-Esser.

($1 = 0.8743 euros)

(Writing by Michelle Martin and Maria Sheahan; Editing by Keith Weir and Alexandra Hudson)

Sign up to read this article
Read news from 100's of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.