The issue involves some 16,000 3-liter diesel Volkswagens, Audis and Porsches sold in California.
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The board claimed that the plans submitted by all three companies were “incomplete and deficient in a number of areas”, and that ongoing technical discussions will need to be had before an agreement can be made. If no fix is possible, the company may have to buy back the vehicles, which could add billions to the cost of its buy-backs.
Last month, VW reached a landmark $15.3-billion (13.7-billion-euro) settlement with U.S. regulators and owners of its 2-liter diesel vehicles that included up to $10 billion to buy back about 480,000 cars. A federal judge in San Francisco is considering whether to approve that settlement even though federal and state regulators haven’t endorsed a method for retrofitting the vehicles to meet emissions standards.
VW shares ignored the CARB’s reaction and were trading up 2.3 percent at 117.6 euros as of 0845 GMT (04:45 a.m. EDT).
An estimated 85,000 vehicles use these engines across the U.S., with a significant percentage residing in California.
A U.S. Environmental Protection Agency spokesperson said the agency agreed that VW has not presented an approvable proposed recall plan for the 3.0-liter diesel vehicles.
The California regulator will continue talks with Volkswagen and the Environmental Protection Agency to reach a solution that “fully mitigates the excess emissions”. The engine is used in the Audi A6, A7 and A8 sedans and Q5 and Q7 sport utility vehicles, as well as the Porsche Cayenne and VW Touareg SUVs.
“It is unfortunate for VW since they were probably hoping for a more positive resolution for this engine”, Jessica Caldwell, director of industry analysis at Edmunds.com.
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Elsewhere around the world, VW is facing a number of regulatory probes and lawsuits filed by auto owners who feel they have been duped and investors who are seeking compensation for the massive drop in the value of their shares.
