Volkswagen to offer buyer incentive for scrapping older German diesels

BERLIN (Reuters) - Volkswagen on Thursday said it will offer trade-in incentives and a bonus for scrapping older diesel vehicles in Germany, in a move to stave off driving bans in polluted cities.

VW will offer an incentive for customers who agree to scrap diesel vehicles equipped with older euro 1 to euro 4 engines, the carmaker said.

German Chancellor Angela Merkel and her coalition partners agreed earlier this month on plans to cut pollution from diesel vehicles by asking carmakers to offer owners trade-in incentives and hardware fixes.

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(Reporting by Caroline Copley; Writing by Edward Taylor; Editing by Riham Alkousaa)