U.S. And California Regulators Reject VW’s Proposal For Fixing Diesel Engines

Volkswagen’s efforts to overcome the diesel emissions cheating scandal were set back after U.S. and California regulators rejected its proposed engine fix, calling it “incomplete.”

The Environmental Protection Agency (EPA) and California Air Resources Board (CARB), which jointly exposed Volkswagen’s violations, said independently that they had rejected the automaker’s recall proposal for 2-liter diesel cars. CARB additionally issued a notice of 13 violations.

This news comes just one day before Volkswagen CEO, Matthias Mueller, is set to meet with EPA administrator Gina McCarthy in Washington, D.C. to discuss the potential fix. This past Sunday, Mueller told reporters that he was hopeful to win approval for its proposed solution, but CARB’s move means that the company may have to go back to the drawing board.

“The proposed plans contain gaps and lack sufficient detail,” wrote CARB in a statement. “The descriptions of proposed repairs lack enough information for a technical evaluation; and the proposals do not adequately address overall impacts on vehicle performance, emissions and safety.”

This specific rejection only affects 2-liter diesels, while the proposal for fixing 3-liter models is due for evaluation by CARB next month.

This certainly comes as a massive blow for Volkswagen as the company has been desperately trying to clean up the scandal that affected millions of vehicles around the world. In the time since the issue was made public in September of last year, VW has reshuffled executives, announced a variety of fixes in various markets, reduced its diesel marketing, and refocused on electric vehicles with the introduction of the Budd-e concept and the greenlighting of the Porsche Mission E concept.

However, VW noted in a statement that the rejection applies to a plan submitted to regulators in December, thereby indicating continued hope for a resolution.

“Since then, Volkswagen has had constructive discussions with CARB, including last week when we discussed a framework to remediate the issue,” said VW. “We are committed to working cooperatively with CARB and other regulators, and we plan to continue our discussions tomorrow when we meet with the EPA.”

CARB said that it and the EPA will continue to evaluate VW’s technical proposals. “Today’s actions do not preclude a recall, but allow for a broader array of potential remedies,” the board said in the statement.

Rebecca Lindland, a senior analyst at Kelley Blue Book, said that the rejection isn’t a surprise.

“Volkswagen has been working on an additional potential fix involving the catalytic converter,” Lindland said in a statement. “Those details have not been worked out. The reasons for the rejection involve needing more details and specifications.”

In addition to the requirement to develop an effective fix for each of the three types of non-compliant 4-cylinder engines, VW must document any adverse impacts on vehicles and consumers. Also, because the emissions scandal is centered around Volkswagen’s use of a sophisticated “defeat device” to avoid regulations, any proposed remedy will have to be tested by California technicians before it can be rolled out to consumers.