VW Launches U.S. Unit to Handle Diesel Restitution

Volkswagen AG is creating a subsidiary in the U.S. to manage the $2 billion it has agreed to spend on electric-vehicle charging stations and zero-emission awareness programs.

The plan is part of VW’s $15.3 billion settlement last summer concerning diesel engines it illegally rigged to cheat emission tests. The new VW unit, called Electrify America LLC and based in Reston, Va., is headed by Mark McNabb, who also is chief operating officer for Volkswagen Group of America.

VW plans to install more than 500 electric vehicle charging stations, 300 of them located in 15 metro areas, according to Reuters. Another 200 quick-charge stations will be added as part of a cross-country network.

Electrify American also will select a city in California in which to test zero-emission-vehicle transit options. The project may include EV-sharing, a zero-emission shuttle service and ZEV transit vehicles.

VW will fund the $2 billion program with $500 million investments every 30 months. Spending will be reviewed and approved by the U.S. Environmental Protection Agency and the California Air Resources Board. A draft plan for the investments is due on Feb. 22.