Volkswagen Wants to Give You Almost $10000 to Trade in a Defected Diesel Car –

Posted: Friday, September 01, 2017

Volkswagen (VLKAY) will offer drivers in the U.K. as much as £7,000 ($9,050) to trade in their diesel cars, as the two-year anniversary of its diesel emissions scandal nears.

Volkswagen said late Thursday that until the end of December drivers with diesel cars made before 2010 will be given discounts between £1,500 and £7,000 to trade in their older models for new ones.

Volkswagen shares were up 0.77% to 11 am in Frankfurt, to change hands at €130.65. Shares have lost more than 7% over the past three months.

Drivers that decide to go for an electric model will also benefit from a government grant of £4,500 for low-emission vehicles, meaning customers could save as much as £10,000 on a new car.

Toyota (TM) , Ford (F) , BMW (BMWYY) , Hyundai (HYMTF) and Daimler’s (DDAIY) Mercedes has all made similar offers.

Nearly two years ago Volkswagen said that it had cheated on emissions tests, affecting millions of its diesel vehicles. It has since had to pay out billion of dollars in penalties and fines, particularly in the U.S. where the scandal was first uncovered. It is still facing a barrage of legal claims across the globe and is expected to have to pay further fines.

However, the carmaker has shrugged off the scandal and has raised expectations for its full-year sales as profits more than doubled in the second quarter to €4.55 billion, up from €1.9 billion. For the first half of the year, group sales revenue rose by 7.3% to €115.9 billion.

The group now expects full year revenues to rise by more than 4%, up from previous guidance of up to 4% growth.

The move from the carmaker comes as governments across Europe consider an all out ban on the sale diesel and petrol engines in a bid to cut air pollution. The U.K. government is considering a ban from 2040 and has proposed a program that will see diesel car owners have to pay higher charges and taxes. France in July announced that it will end sale of petrol and diesel vehicles by 2040.

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