Declining Diesel Demand Leaves German Dealers With $5 Billion In Unsold Vehicles

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.”

PHOTO GALLERY

  • rover10

    Why oh why do we collectively walk into these types of crises? Sometimes the issues are staring us in the face, and yet, there appears to be a willful blindness. I fear the plight of the EURO is in the same ballpark.

  • John

    no one wants to buy car from companies that won’t take the responsibilities when the companies is at fault.
    Takata went under but GM on the other hand… amazing they survived ignition case.

    • LeStori

      The typical person who does lots of short trips should never have purchased a diesel in the first place.Another case of the road to hell is paved with good intentions. In this case save the planet by reducing CO2 but forgetting; that in doing so you were going to increase toxic pollution especially during in short term journeys. All sponsored by the government. You have to wonder what will be the unintended consequences of the drive to electric cars.

      • John

        1. pollution from making the battery/solar panel and generating electricity.
        2. electricity cost will increase unless home solar panel increases in efficiency and installation rate.

  • YOU HAVE TO WONDER WHY THEY BUILT SO MANY GIVEN THE BACKLASH LATELY.

  • Auf Wiedersehen
  • Ditzebächer

    I don’t see it. Since ~10 years I observe VW Touran and Opel Zafira (Tourer) as I have bought a Touran 10 years back and observing the best occasion to jump to a new used one. I always search 1 year old, less than 40.000 km and diesel. Since my start of observation in my area they are starting at ~20.000 euros, some with lesser options already at 18.500. The price level is still quite stable.

2020 BMW M2 CS Spied Inside-Out, Coming This Fall With 444 HP

More power and less weight is a winning combination; the M2 CS will have both in spades.

Russian Army Cops Attempt 180-Degree Reverse Turn – And Fail Spectacularly

It would seem that the Vesta may not be the best car for attempting these types of stunts.

Top Gear Hoons Around In A Porsche Panamera And Ferrari GTC4Lusso

Although Harris is clearly more skilled than LeBlanc, he couldn’t make up for the superiority of the Ferrari.

The Bugatti Divo Actually Looks Good As A Front-Engined GT

Even if Bugatti chooses to do a grand tourer and not an SUV, it will bear no resemblance to this rendering.

Does The Mercedes-AMG A35 Perform As Advertised In The Real World?

The Merc’s spec sheet claims it’ll get you to 62 mph in a mere 4.7 seconds. Does it?.

2020 Porsche 718 Boxster Spyder And 718 Cayman GT4 Debut With New 4.0-Liter Boxer Engine

The new engine produces 414 hp in both models.

2020 Mercedes E-Class Sedan Gets More Power In America

The 2020 E-Class has an upgraded, turbocharged 2.0-liter four-cylinder engine with 255 hp.

Think Creating A New Car Is Easy? Rimac Demonstrates It’s Anything But

Sketching the design takers a mere 1 percent of total development time – the rest is a long, and arduous, process.

Toyota GR Super Sports Concept Hits The Track In Order To Gear Up For Next Year’s Le Mans

With less than a year to go, Toyota has begun testing the Toyota GR Super Sports concept.

Hummer To Be Reborn As An Electric-Only Brand?

GM is toying around with the idea of a Hummer relaunch, but still sounds pretty far-fetched.