German scrappage schemes could be extended to aid clean air initiatives

20 December 2017

German vehicle manufacturers Daimler, BMW and Volkswagen (VW) want to extend their scrappage scheme offers in Germany by at least six months.

The initial offers were first developed following the German diesel summit in August. There, vehicle manufacturers agreed on a package of measures to improve the image of diesel technology, with a recall of 5.3 million vehicles to have their emission profiles altered, and scrappage schemes put in place for older vehicles that cannot be altered. This means any Euro 4 vehicle or older is eligible.

Initially, these scrappage schemes were due to finish at the end of 2017. However, by extending the plans for another six months, manufacturers are hoping to boost sales, and avert potential city bans in Munich, Cologne and Stuttgart.

Speaking to German website Automobilwoche, a spokesperson for BMW said: ′We will make our contribution to clean urban air and have therefore decided to continue the campaign until 30 June 2018.’

The Daimler Group has also decided to extend the deadline. ′If you order a car by the middle of next year, you will benefit from the exchange premium,’ said a spokeswoman for Automobilwoche,

However, VW will only extend its scheme until 31 March, across all the group’s brands in passenger and commercial vehicles. Fred Kappler, Volkswagen’s head of group sales, says: ′The renewal of the environmental bonus program shows that the Volkswagen Group’s brands are determined to make their contribution to improving air quality in inner cities, thus fulfilling our promise as a manufacturer, We also want to convince our customers to opt for modern, low-emission, state-of-the-art vehicles.’

At Opel, the environmental bonus will initially be valid until the end of 2017. ′We would, of course, inform us about possible further measures in good time, after discussing them with our sales partners,’ the Opel press office said.

Initially, just the German manufacturers were involved. However, others followed suit, not wanting to lose out on potential sales through trade-in incentives. Ford has declared that its trade-in scheme will continue until cancelled, and there is currently no end declared.

According to the latest data from the Federal Motor Transport Authority, as of January 1, 2017, 6.4 million diesel cars with Euro 1 to Euro 4 engines were registered in Germany. While no information has been revealed on how successful the exchange scheme has been, sales in Germany dropped by 3.3% in September but rose by 3.9% in October, when registrations for vehicles purchased under the schemes would have started to become prevalent. Sales also increased by 9.4% in November.

There is no word yet on whether similar schemes adopted in the UK will be extended. Manufacturers are likely to have brought these plans to the country as it faces a decline in sales for the year.

Photograph courtesy of BMW