Volkswagen has decided to replace older diesel engines of its owners with the new ones and provide with an undisclosed incentive to do so, reports suggest.

During a conversation with the German Transport Minister Andreas Scheuer on Wednesday, Volkswagen CEO Herbert Diess stated that the move was to help fund installing more effective exhaust filters, Germany’s Spiegel Online reported.

Volkswagen CEO Herbert Diess stated that the move was to help fund installing more effective exhaust filters, Germany's Spiegel Online reported

The agreement comes amid a discussion between the German government and Sheur, who had earlier ruled out that a taxpayer must not contribute to the possible retrofits.

The German auto giant which earlier rejected the proposal to buy back the old cars later agreed to fit the older diesel engines with better catalytic converters, reversing its position as a result of growing pressure of the infamous diesel scandal that it was a part of since the past three years.

The German auto giant which earlier rejected the proposal to buy back the old cars later agreed to fit the older diesel engines with better catalytic converters

This entire matter, however, pertains to the German courts’ proposal to ban cars with older diesel on the basis of charges that were filed by environmentalist groups against the German cities as a way to cut pollution from particulate matter and nitrogen oxides.

Hence, carmakers are now scrambling to avert the outright banks of diesel vehicles and engage in replacement policies to avoid the ban.

The article was adapted from an article at Nikkei Asian Review, which you can find here.