Germany’s ruling coalition pushed Volkswagen, Daimler and BMW to offer trade-in rebates for older diesel vehicles to avoid driving bans in urban areas and defuse a crisis that’s sullying the country’s reputation as an automotive leader. The plan wasreed by Chancellor Angela Merkel’s government after a meeting that ended in the early hours of Tuesday morning. The main focus of the measures is on trade-in offers in the most polluted cities, which will allow owners of models with Euro-4 and -5 emissions standards to purchase modern used models rather than just new cars. The package also includes proposals for controversial upgrades to emissions hardware that the German government wants carmakers to fund.
