Reuters is reporting the U.S. Environmental Protection Agency (EPA and California Air Resources Board (CARB) have approved a fix for about 326,000 Volkswagen diesel vehicles. The vehicles are involved in the company’s 2015 diesel emission scandal; many of which have been repurchased by the German automaker.
The fix will be applied to some of the oldest vehicles involved in the diesel emission scandal that are equipped with Volkswagen’s 2.0-liter four-cylinder engine. VW will allegedly apply both hardware and software revisions to these vehicles, including a new emissions catalyst. The company also cautions that the revisions will lower fuel economy by an average of 2 mpg.
VW says the company is pleased the fix has been approved for the vehicles, which it says will apply to 98 percent of the impacted vehicles.
Despite having approval for a fix for the vehicles, VW still does not have approval to resell these vehicles in the U.S. or export them. Right now the company is holding about 275,000 impacted vehicles in various locations throughout the U.S. These vehicles are ones the company has repurchased from customers, which has cost VW about $6.3 billion thus far.
Today’s approval does allow the company to offer the fix to owners who have not had their vehicle repurchased yet. All owners of impacted vehicles have had some form of compensation awarded to them. This approval is seen as a big step forward in VW’s effort to move beyond its scandal.
In 2015 Volkswagen admitted to cheating on diesel emission tests in both the U.S. and Europe. Subsequently, the company pled guilty to three felony accounts in a U.S. court in March admitting to its wrongdoing.
Volkswagen has said it will spend up to $25 billion to rectify the situation created by its diesel scandal.