Volkswagen said on Thursday that it would offer new premiums for people who want to trade in older diesel vehicles in order to avoid the imposition of diesel bans in German.
The incentives, which will go into effect immediately, apply to vehicles with emissions standards Euro 1 to Euro 4 all over the country.
It also covers diesel vehicles with standards Euro 4 and Euro 5 in the 14 German cities where pollution levels are deemed dangerously high.
Volkswagen said it would scrap the older vehicles, in a move that Sales Chief, Christian Dahlheim, said would make a “significant contribution” to better air quality.
The German carmaker did not say how high the premiums would be, but sources told said that they will be as high as 10,000 euros ($11,500) for vehicles with emissions standards Euro 1 to Euro 4.
The auto industry is under immense pressure to address concerns over diminishing air quality in cities, particularly after it emerged that Volkswagen and other manufacturers cheated on emissions tests.