WASHINGTON (Reuters) – The U.S. Environmental Protection Agency and California Air Resources Board will approve later on Thursday a fix for more than 300,000 older Volkswagen AG (VOWG_p.DE) diesel cars, two people briefed on the matter said. The fix will include hardware and software upgrades, but will reduce vehicle fuel economy ratings by as much as 2 miles per gallon, said the persons, who could not speak for attribution because the decision was not yet public.
The world’s largest automaker will still need to obtain approval for a resale plan for the 2009-2014 model diesel vehicles after making repairs, but the fix is a significant milestone for the company that aims to move beyond its diesel emissions crisis. Volkswagen did not immediately comment.
Reporting by David Shepardson; Editing by Matthew Lewis