Volkswagen is reportedly being called to make restitution for the recent diesel emissions cheat scandal, which has severely clouded the car giant's reputation.

The US Environmental Protection Agency has asked VW to produce electric vehicles in its factory in Chattanooga, Tennessee, according to German newspaper Welt am Sonntag (via Google translate). The car maker has also apparently been told to develop a network of charging stations.

However, the EPA and Volkswagen were tight-lipped about any such plans. VW told Reuters that its talks with the regulator were continuing. But the company declined to comment on specific details when quizzed.

The VW emissions test cheating saga broke late last year, when the US government claimed that the German car manufacturer had installed “defeat devices” that “rendered inoperative elements of the vehicle’s emission control system.”

The US Department of Justice subsequently sued the company, which had been forced to recall 500,000 Volkswagens and Audis in the wake of the nitrogen oxide emissions scandal. The DoJ alleged that VW had installed defeat devices in over 600,000 diesel passenger vehicles in the US. On top of that, the German car giant was accused of misleading federal regulators. The DoJ and EPA asked the court to require Volkswagen to pay substantial civil penalties, and halt sales of any car believed to come loaded with a defeat device.

Volkswagen said in response to the DoJ's lawsuit that it was continuing to work cooperatively with the EPA to develop remedies to bring the turbocharged direct injection (TDI) vehicles into full compliance with regulations as soon as possible.