FILE PHOTO: The logo of Volkswagen is seen at their plant in Wolfsburg, Germany, April 12, 2018. REUTERS/Fabian Bimmer/File Photo

BERLIN (Reuters) - Volkswagen VOWG_p.DE 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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