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

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.