The California Air Resources Board and Environmental Protection Agency says Volkswagen has submitted a plan to fix 80,000 recalled 3.0 litre diesel SUVs and cars that emit up to nine times legally allowable pollution. Laura Frykberg reports.
Volkswagen still has a lot of drive. In an attempt to rev up sales, the German carmaker has launched a new range of vehicles in India. It's not quite the end of the road for its emissions scandal though. Months after it broke, US regulators say it's finally offered a proper solution to the crisis. Saying it will recall and fix tens of thousands of diesel engines in the U.S. which are nine times the legal emissions limit. IG's Alastair McCaig. (SOUNDBITE) (English) IG, MARKET ANALYST, ALASTAIR MCCAIG SAYING: "I think they need to work at repairing their brand in the U.S. and taking proactive measures is undoubtedly the first step in unfortunately what will be many steps required to recover." Previous plans put forward by Volkswagen have been rejected in the US as 'substantially deficient'. If this one is approved, it will eventually be able to sell diesel vehicles there again. A green light can't come soon enough for the company. It's now been overtaken in the U.S. car market. (SOUNDBITE) (English) IG, MARKET ANALYST, ALASTAIR MCCAIG SAYING: "We've seen figures out from Ford as far as their annual revenues and sale figures are concerned and they're pretty good. GM is also about to post their figures. There's been a migration away from European automotive manufacturers in the US regardless of whether they had a VW badge on their cars or not." There has been a small victory for Volkswagen closer to home though. It's won approval to start fixing 8.5 million vehicles affected across Europe.