VW has EPA nod to sell repaired diesels

Bloomberg

Volkswagen AG will soon do what’s been impossible since its emissions crisis began: sell diesel-powered cars in the US. The company received approval from the Environmental Protection Agency for its dealers to sell 2015 model year diesels after updating the vehicles’ emissions software, VW Group of America spokeswoman Jeannine Ginivan said.
The software update is part of a required emissions repair approved by the EPA and California Air Resources Board. The repair will also 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.
Volkswagen admitted 18 months ago 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 $24 billion (22.6 billion euros) to cover costs and fines related to the scandal.
The shares were little changed at 136.50 euros at 9:19 a.m. in Frankfurt trading, bringing the decline since the scandal broke in September 2015 to about 16%. Reviving diesel sales marks a significant milestone in VW’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 VW brand’s pre-scandal sales.
Yet it’s a mostly symbolic step. The sales approval only applies to about 67,000 diesels from the 2015 model, about 12,000 of which are currently in dealer inventory, Ginivan said. An EPA spokeswoman didn’t immediately return messages seeking comment.