Volkswagen, Renault, Kia and Toyota announce scrappage schemes

Tammy Harvey
September 2, 2017

The scheme, which runs until 31 December 2017, covers all VW commercial vehicle brands as well as Audi, Seat and Skoda models.

Through a new scheme created to get older polluting cars off the road, potential buyers can get incentives of between 1,800 and 6,000 pounds ($2,324 and $7,747) for a new Volkswagen if they trade in an older vehicle.

The offer stands for any make or model of diesel vehicle first registered in the United Kingdom before December 2009, and marks another recovery effort from the company battered by a massive emissions scandal two years ago.

A similar trade-in scheme exists in Germany.

It comes as the hardest ever new-car emissions tests start to be rolled out. Pressure has mounted since the diesel emissions scandal, in which VW was found to be deliberately cheating vehicle emissions tests.

Automaker Nissan is offering a scrappage scheme for customers to switch to all-electric Nissan LEAFs, while fellow Japanese automaker Toyota and German manufacturer Volkswagen (VW) have also entered the diesel scrappage market.

Meanwhile, the marque's plug-in hybrid and fully electric models are leading players in the EV world.

So, for example, an e-Golf, which gets a £4,500 grant from the government, will also have VW trade-in saving of £5,500, adding up to £10,000 off in total.

The EU's new emissions tests, launched today, will require all new cars to undergo much stricter testing before they hit the showroom.

Jim Holder, editorial director of Haymarket Automotive, told the BBC: "The vehicle industry is trying to get on the front foot after an extended period of negative headlines in the wake of dieselgate".

However, he said it would also be important to VW that its United Kingdom competitors have similar schemes running, and VW will probably have pitched their discounts at that level in order to compete.

BMW's "lower emissions allowance" offers discounts to drivers who trade in a pre-Euro 4 engine (pre-January 2005) diesel auto that they've owned for at least 12 months.

According to commentators though, VW's United Kingdom scheme fell short of the terms offered to drivers in its home market. Vehicles part-exchanged through the scheme will be permanently destroyed.

With the Hyundai scrappage and emission reduction scheme, drivers can enjoy a discount on a new vehicle when they trade in a auto registered before 31 December 2009.

Customers can get a discount of £2,000 off models including Aygo, Prius and Hilux, and £4,000 off a Land Cruiser. Toyota announced a similar scheme on Thursday, offering up to £4,000 ($5,170) off its vehicles.

Toyota GB president and managing director Paul Van der Burgh said: "Our scrappage scheme is a win-win solution".

Other reports by Ligue1talk

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