Volkswagen AG will soon do what has been impossible since its emissions crisis began: sell diesel-powered cars in the US.
The company received approval from the US Environmental Protection Agency (EPA) for its dealers to sell 2015 model year diesels after updating the vehicles’ emissions software, Volkswagen Group of America Inc spokeswoman Jeannine Ginivan said.
The software update is part of a required emissions repair approved by the EPA as well as the California Air Resources Board.
The repair is also to include changes to diesel engine hardware, but dealers do not have to wait until the repair parts become available early next year, Ginivan said.
“We are still finalizing the details of this program and will provide more information on its implementation at the appropriate time,” Ginivan said in a statement.
Volkswagen 18 months ago admitted to rigging nearly 500,000 diesel cars to pass US emissions tests. The Wolfsburg, Germany-based company froze sales of new and certified used diesels in the US while it worked with regulators on an approved fix.
The company has put aside US$24 billion to cover costs and fines related to the scandal.
Reviving diesel sales marks a significant milestone in Volkswagen’s efforts to recover from the scandal and rebuild its relationship with environmental regulators.
It also returns a key product to dealer showrooms that attracted a cult-like customer base and accounted for about 20 percent of the brand’s pre-scandal sales.
However, it is a mostly symbolic step. The sales approval only applies to about 67,000 diesels from the 2015 model, about 12,000 of which are in dealer inventory, Ginivan said.
Volkswagen has also said no new diesel models would be offered in the US at least through model year 2018.
The company is moving aggressively toward electric vehicles, signaling a diminishing role for diesel engines in the company’s portfolio, especially in the US.
The program is also to eventually include used 2015 diesels the company has repurchased from owners through a settlement last year with US regulators and owners, Ginivan said.
Some customers have elected to keep their cars and receive restitution and an emissions repair under the terms of its US$10 billion buyback program.
While diesel engines found in about half of new passenger cars sold in Europe — in part due to tax breaks — they never fully caught on in the US, accounting for less than 3 percent of deliveries.
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