VW to offer incentives as part of German “environmental programme”
Volkswagen has introduced a new “environmental programme” aimed at encouraging German consumers to trade in diesel-fuelled vehicles.
In a bid to rectify the ongoing headache of its so-called “dieselgate” scandal, and shore up demand for its incoming suite of electric vehicles, the brand will now offer substantial incentives to trade-in older models for new electric, hybrid and natural gas-powered vehicles.
“Volkswagen is supporting the technological changeover to e-mobility and is shouldering its share in the responsibility for climate-compatible, health-compatible mobility on Germany’s roads. Within the framework of this environmental program, Volkswagen will significantly reduce the nitrogen oxide emissions of more recent diesel vehicles (Euro 5 and 6 standards) by software update,” it said in an August 8 statement.
The company will offer an incentive of up to 10,000 euros (US$11,750) for the purchase of a more modern vehicle if an older diesel vehicle (Euro 1 to Euro 4-standard) is scrapped at the same time. This is in addition to a separate future inventive to those purchasing an EV offered by the German state. These are stated as €1,000 for gas-powered models, €1,785 for hybrid and €2,380 for an EV.
Trade-in scrappage incentives from VW are listed below:
The Volkswagen environmental and future incentives will be available until December 31, 2017, and applications can be made immediately to Volkswagen dealers in Germany.
The company’s head of sales and marketing in Germany, Thomas Zahn noted: “Customers purchasing a new Golf receive an environmental incentive of €5,000. That corresponds to the scrappage incentive paid in 2009, without the state subsidy. If you opt for an e-Golf, you will receive an additional future incentive of €2,380. This means that we are doubling the manufacturer’s share of the existing state environmental incentive program, from which customers will receive a further amount of €4,380. The total support available to customers is therefore €11,760.”
Heady sums indeed. However, VW is still hampered by a relatively poor offering of electrified models. The e-Up, and 2017 e-Golf are the only all-electric models currently available, in addition to a plug-in hybrid version of the Passat.
In that regard, the incentive would appear to be a quick-fix measure to shore up sales of the 2017 e-Golf, which has a 36-kWh battery and 125-mile range (or 186 miles if you believe NEDC ratings). Nevertheless, for Germans considering trading in a dirty old diesel, it would seem there has never been a better time.