VW Offering Diesel Buyback Deals After Ruling Supports City Bans

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VW spokeswoman Jeannine Ginivan revealed that the cars are being housed at these facilities "to ensure the responsible storage of vehicles that are bought back under the terms of the Volkswagen" diesel settlements.

As per reliable sources, the German court decided that the cities with a higher level of pollution can restrict diesel cars from circulation.

Meanwhile, in the US Volkswagen has paid more than $7.4 billion to buy back about 350,000 US diesel vehicles through mid-February, a recent court filing shows. As of the end of a year ago, VW was storing 294,000 vehicles around the country.

The move follows in the footsteps of fellow German carmaker BMW, which said earlier this month it would offer to take back leased vehicles if diesels were banned within 62 miles of the operator's home or place of work.

Storage lots include a shuttered suburban Detroit football stadium, a former Minnesota paper mill and the desert site near Victorville, California. (Reuters/Lucy Nicholson) This is just one of 37 facilities in the USA storing VWs and Audis. And now it's waiting for U.S. regulators to approve emissions modifications for the stored vehicles so it can either re-sell them or export them. In December, VW said it had destroyed about 28,000 vehicles and resold a further 13,000.

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The German firm has agreed to buy back about 500,000 United States vehicles in all following the scandal over diesel emissions.

Now the buy-back scheme will only apply in Germany to begin with, but it could expand outside the country in future.

VW said the existing scrappage offer has taken some 120,000 old diesel vehicles off the road since it was introduced in August past year, replacing them with greener versions that soon could also be deemed too dirty to be driven in Germanya.

In April 2017, Volkswagen was sentenced to three years probation after pleading guilty to three felony counts and paid $4.3 billion in federal penalties.

By the middle of February, VW had issued 437,273 letters offering almost $8bn in compensation and buybacks. In September 2015, the auto maker admitted to circumventing the emissions control system in U.S. diesel vehicles for vehicles sold since 2009, prompting the resignation of the company's chief executive.

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