October 26, 2015 / 5:33 PM / 3 years ago

VW considers discounts to owners of cars with cheat software in Germany: source

The logo of German carmaker Volkswagen is seen at the Volkswagen (VW) automobile manufacturing plant in Puebla near Mexico City September 23, 2015. REUTERS/Imelda Medina

BERLIN (Reuters) - Volkswagen (VOWG_p.DE) may offer customers in Germany discounts on new vehicle purchases if they turn in certain old models affected by the emissions cheating scandal, a senior source at VW said.

VW is pondering a range of measures to stabilize deliveries such as incentives to dealers to buy back old models and cheap loans, but no decision has been taken yet, the source told Reuters on Monday.

Europe’s largest automaker has been rocked by the biggest business crisis in its 78-year history after admitting in September it had installed software capable of deceiving U.S. regulators about the true level of toxic emissions.

The measures may focus on owners of cars with 1.6-litre diesel engines which require costly component upgrades rather than just software fixes, the source said, confirming a report by German news agency DPA.

“The need to take action will arise if we see an impact (on vehicle sales),” the source, speaking on condition of anonymity, said. “To date this has not been the case.”

Considering special offers for existing customers is part of “daily business” by VW and its dealers, a VW spokesman said, declining to be more specific.

Deliveries at the VW group, which also includes premium brands Audi and Porsche, slid 1.5 percent in September to 885,300 cars, with the nine-month total also down 1.5 percent to 7.43 million vehicles.

Reporting by Andreas Cremer; Editing by Andreas Framke and Adrian Croft

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