Volkswagen has pledged to buy back cars from its customers who own diesel vehicles if German cities impose bans.
Its German Guarantee will apply to the purchase of a new or a year-old car with a diesel engine from a Volkswagen dealership from 1st April throughout 2018.
It will be valid for three years from the date of purchase and offers customers the opportunity to exchange vehicles.
The announcement follows a court ruling last month allowing German cities to ban the most polluting vehicles.
Volkswagen has so far taken around 120,000 old diesel vehicles off the road since August 2017 and replaced them with efficient and cleaner models following the dieselgate scandal.
It is extending the diesel environmental incentive for new vehicles until 20th June 2018.