I'm pretty sure that any software fix resulting from this issue will directly lead to reduced economy and possibly reduced power. Those NOx requirements are a killer.
Such a shame. Those VW TDIs are fantastic on the highway.
Other manufacturers do meet the CA guidelines, but they need urea injection to do it. I don't recall any other manufacturer offering a diesel at the same size and price point as VW in America. Hell, Mazda have spent years trying to get their small SkyActiv-Ds to meet US requirements, and have so far failed.
This probably means death to the dream of cheap, small diesels in the US... at least for the next few years.
And with potentially eleven million VWs affected, there will likely be a ripple effect throughout Europe and other developed markets as well.
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