It looks like cash payments aren’t the only way Volkswagen will try to make up for installing emissions-cheating software on its diesel vehicles. The German automaker may also end up building electric cars in the U.S., at the behest of the federal government.
Based on an article in the German newspaper Welt am Sonntag, Automotive News reports that the U.S. Environmental Protection Agency has asked Volkswagen to produce electric vehicles at its Tennessee factory, and help build a network of electric-car charging stations, as a way of making up for the emissions-cheating diesel vehicles the automaker sold in the U.S. Volkswagen has been showing a number of all-electric concepts in the months since the diesel emissions scandal broke, including the Budd-E microbus shown above. Volkswagen already sells a hybrid and a limited number of battery-electric vehicles in some U.S. regions, so it’s not clear whether the EPA is asking the company to build new models or simply expand production of those existing vehicles at its plant in Tennessee.

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Now more than five months into the scandal, Volkswagen and the EPA still can’t come to an agreement on how to fix the 600,000 vehicles still affected by the scandal in the U.S. When asked for comment by Automotiv...