Feds ask Volkswagen to make EVs in US as penance for Dieselgate, report says

It won't pull particulate out of the air, but it's an important step in moving beyond diesel.

Volkswagen's latest concepts, including the BUDD-e seen here, have placed the focus on electrification.

Antuan Goodwin/CNET

When news of Dieselgate broke, it was no surprise that Volkswagen would end up paying out the wazoo to make up for its wanton disregard of the law. But those reparations are not limited to money: The feds reportedly want Volkswagen to double down on electric vehicles, and to do so within the US.

Citing German newspaper Welt am Sonntag, Reuters reports that the US Environmental Protection Agency is asking Volkswagen to manufacture its electric vehicles in the US. This would be but one step in "making up for" the company's use of defeat devices in its diesel vehicles, which allowed the cars to pollute above legal limits.

The EPA declined to comment on the record, and Volkswagen told us that it doesn't comment on speculation. A VW spokesman told Reuters that the company isn't commenting on ongoing discussions, as well.

While its diesel vehicles do produce superior fuel economy compared to its gas-powered brethren, diesel is not a long-term solution. VW has realized that much, and when it announced that its upcoming Phaeton sedan would be electric, the company also pledged to put even more support behind electric vehicles, including mild and plug-in hybrids.

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