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the engine software update, applied in the recall last year, by itself made the cars pass emission thresholds in other countries, which had a lower bar than US. I wonder if VW's plan will be to buy back the cars and resell them in Europe or Latin America.

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I read yesterday, caveat: while most news was still rumored, that VW would not be permitted to resell the vehicles.

Not permitted by whom? Can the EPA prevent them from re-selling them in Mexico? I would not think so.

The EPA probably can't directly, but the US government has full control over what crosses its borders. If the appropriate government arms decide VW is not allowed to export these cars from the United States intact, that will effectively prevent VW from reselling them elsewhere.

Surely they can resell them outside the EPAs jurisdiction.

See my comment to your sibling. The US government, though not necessarily the EPA, can certainly prohibit VW from exporting the affected cars.

VW won't be doing a buyback because they simply decided on their own to do so. It will be part of a deal with the US to settle the case. If the terms include a resale prohibition, VW will have to honor that if they want to keep the case settled.

Was there a noticeable impact on performance or efficiency?

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