Demand for diesel vehicles in Germany has declined so much that dealers have $5.3 billion worth of diesels waiting on lots.
Earlier this month, Volkswagen, Daimler and BMW agreed to update 5 million of their most polluting vehicles while also offering trade-in incentives for older models. However, German Environment Minister Barbara Hendricks believes the planned upgrades won’t be enough for cities to meet acceptable nitrogen oxide levels.
Since Volkswagen’s dieselgate scandal, demand has dwindled for diesels across the country. In fact, 29 per cent of German’s diesel drivers have admitted that they want to sell their vehicles as quickly as possible due to concerns about their falling value. Furthermore, 77 per cent of dealerships have cut prices on diesels, Bloomberg reports.
In a report published Thursday, head of automotive at Commerzbank, Cedric Perlewitz, said “The new ‘diesel fear’ among customers has significant consequences for car companies. Carmakers need to significantly expedite their strategic shift to electric cars.”