The German environment minister wants the country's carmakers to make fundamental changes to their vehicles to curb dangerous emissions, The plan - if it came into effect - is likely to hit other European manufacturers as well.
German Chancellor Angela Merkel told lawmakers forcing carmakers to retrofit diesel cars to lower emissions was the wrong approach. She said it was up to the industry to regain public trust and invest in the future.
Germany and five other EU countries are facing fines for breaking the law on air pollution. The European Commission is taking them to court — which could get expensive.
The German government could be planning a multibillion euro scheme to retrofit diesel cars to cut emissions. The government desperately wants to avoid diesel cars being banned from city centers.
German luxury carmaker Audi has admitted it has detected irregularities in the emissions controls of recent models. It halted all deliveries of the cars affected in the latest twist of the Dieselgate scandal.
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