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Germany May Inflict More Diesel Pain on Carmakers

  • Volkswagen’s home state calls for 1 billion-euro diesel fund
  • Minister says government will protect auto industry jobs
Updated on

Germany is preparing to take another run at shoring up diesel as it seeks to balance efforts to improve urban air quality with concerns about lost jobs from the technology’s decline.

Transport Minister Andreas Scheuer signaled automakers including Volkswagen AG and BMW AG could be hit with more painful measures to reduce smog-causing emissions, while pledging to protect “hundreds of thousands of jobs” in the car industry. Stephan Weil, the head of Volkswagen’s home state of Lower Saxony, called for a 1 billion-euro ($1.23 billion) fund to help cities upgrade diesel vehicles.