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German carmakers reach deal to cut diesel emissions

German carmakers agreed on Wednesday to update the software in 5.3 million diesel-powered cars to reduce emissions, Transport Minister Alexander Dobrindt told reporters.

He said the carmakers would also self-fund incentives aimed at encouraging consumers to trade in diesel cars that were 10 years old and older for newer models with lower emissions.

Dobrindt and Environment Minister Barbara Hendricks both said the German government would do all it could to avoid driving bans for diesel cars in German cities.