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Volkswagen To Correct Fuel Economy Labels For 98K U.S. Vehicles

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The U.S. Environmental Protection Agency or EPA has asked Volkswagen AG to correct fuel economy labels for roughly 98,000 gasoline powered vehicles, as the German auto major's software overstated the actual ratings. The company is also required to forfeit greenhouse gas emissions credits after it under-stated emissions by about 220,000 metric tons.

Reuters reported that the company agreed to a $96.5 million court settlement to reimburse affected customers.

In an investigation, the EPA and the California Air Resources Board discovered that the company employed a faulty software in around one million gasoline, light-duty vehicles in the United States to manage vehicle transmissions. These include Audi, Bentley, Porsche and Volkswagen brand vehicles from model years 2013 through 2017.

During the EPA-prescribed emissions test, this software causes the transmission to shift gears in a manner that sometimes optimizes fuel economy and greenhouse gas emissions, but not under normal driving conditions.

Based on investigations, Volkswagen found that, deactivation of the software resulted in an impact to fuel economy on roughly 98,000 vehicles of approximately one mile per gallon.

Volkswagen, which was caught in 2015 using illegal software in thousands of vehicles to cheat U.S. pollution tests, reportedly has payed around 30 billion euros till now as fines and penalties.

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