Volkswagen Struggles To Agree With US Regulator Terms In Fixing Cheating Cars

By Lynn Palec, | January 07, 2016

The Volkswagen plant in Chattanooga ,Tennessee.

The Volkswagen plant in Chattanooga ,Tennessee.

In the wake of the massive emission test scandal that German automaker Volkswagen was involved in, the company is currently struggling to agree with United States regulators' terms in fixing affected vehicles.

Sources told Reuters that Volkswagen is planning to engage in further negotiations with the Californian Air Resources Board this week. The German automaker will also a meeting with U.S. Environmental Protection Agency next week, with hopes of reaching a final solution to the issue before the deadline in the middle of January.

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Finding the ideal fix for the problem proved to be more difficult than initially anticipated. People with insider information about the issue claim that the proposed solution involves manufacturing new components that required testing.

Analysts believe that four months after the scandal came to light and the current lack of plans to repair the damages highlight the lack of progress in fixing the issue.

The U.S. Department of Justice is suing Volkswagen for $48 billion over allegations of violation of environmental laws.

According to Reuters, Volkswagen is facing fines of up to $37,500 per vehicle for each of the two laws the company violated. The complaint against Volkswagen claims that illegal defeat devices were installed into at least 600,000 vehicles in the Unites States alone. When found guilty, the company is will pay an estimated cost of around $534 million in damages.

In a statement acquired by Forbes, Volkswagen chairman Herbert Diess said, "I assure you we are doing everything we can to make things right and we are working night and day to find effective technical remedies for our customers and authorities worldwide."

The emission test scandal was first discovered in US regulators in September 2015. Initial reports claim that the problem may have been contained only within a handful of engines but as investigators probe deeper, it was revealed just how massive the scope of the problem is.

Latest reports regarding the situation claim that Volkswagen is planning to buy back at least 115,000 cars that were installed with the defeat devices. The German automaker also expects that the remaining affected vehicles will require major refits and will incur massive repair cost to the company.

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