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.

Maserati’s One-Of-One Levante GTS Delivered To NBA Legend Ray Allen

The former NBA basketball player’s unique Levante has been personalized by Maserati’s One of One division.

Jaguar Design Boss Doesn’t Want Giant iPad-Like Screens In His Cars

The restyled Jaguar XE’s dual-screen setup is what design boss Ian Callum considers acceptable.

2020 Toyota Proace City Is A Rebadged, PSA-Built Compact Van

The Toyota Proace City goes on sale in Europe in early 2020 with multiple configurations, including Verso people-carrier.

2020 Audi TT RS Is Ready To Put A Grin On Your Face

The 2020 Audi TT RS is priced from $67,895 in the U.S. as first cars will arrive in dealerships this spring.

VW’s Tarok Pickup Could Be Priced In The Mid-$20,000 Range

VW sees an opening in the lower end of the market while its rivals chase sales of luxury pickups.

We Spy Europe’s 2020 Renault Koleos As China Model Quietly Debuts In Shanghai

The 2020 Koleos unveiled in China has subtle changes – is the Euro-spec getting a more extensive makeover?.

Volvo Deems Subscription Service A Must, Otherwise Amazon May Seize The Opportunity

Volvo’s U.S. subscription program has been opposed by a series of disgruntled dealers in California.

Aston Martin DBS 59 Honors 1959 24 Hours Of Le Mans 1-2

Commissioned through “Q by Aston Martin”, the Superlegerra-based special edition will be built in 24 examples.

Middle East-Bound 2019 Silverado RST And Trail Boss Come As Regular Cabs

Chevrolet has launched the all-new 2019 Silverado in the Middle East with two region-exclusive versions.

Qiantu K50 Electric Sports Car Coming To The U.S. Thanks To A California Company

The Qiantu K50 is powered by an electric motor on each axle delivering a maximum of 429 hp.