German gov't mulls forcing automakers to upgrade diesel cars

MarketsAssociated Press

The German government is considering forcing automakers to upgrade diesel vehicles that fail to meet emissions standards.

Chancellor Angela Merkel's ministers will discuss the idea at a two-day retreat at the Meseberg mansion house near Berlin starting Tuesday.

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Some in Merkel's new Cabinet have resisted imposing costly measures on Germany's powerful auto industry, but a recent court ruling allowing cities to impose bans on heavily polluting diesel cars is forcing the government to act.

German car manufacturers have been embroiled in the scandal over excessive emissions from diesel cars.

Germany's transport minister on Tuesday announced the first of four subsidy programs for electric vehicles and charging infrastructure.

Andreas Scheuer said the government will spend 20 million euros ($27 million) to support e-car purchases by companies including Deutsche Post AG.