WASHINGTON, July 27 (Reuters) - The U.S. Environmental Protection Agency and California Air Resources Board will approve later on Thursday a fix for more than 300,000 older Volkswagen AG diesel cars, two people briefed on the matter said. The fix will include hardware and software upgrades, but will reduce vehicle fuel economy ratings by as much as 2 miles per gallon, said the persons, who could not speak for attribution because the decision was not yet public.
The world's largest automaker will still need to obtain approval for a resale plan for the 2009-2014 model diesel vehicles after making repairs, but the fix is a significant milestone for the company that aims to move beyond its diesel emissions crisis. Volkswagen did not immediately comment. (Reporting by David Shepardson; Editing by Matthew Lewis)