Volkswagen diesel-cheating scandal: EPA, CARB and VW granted further delay in court-mandated deadline

Volkswagen diesel-cheating scandal: EPA, CARB and VW granted further delay in co

The Volkswagen diesel vehicles emissions scandal is far from over and the German automaker has been given additional time to deal with the issue. Lately, all the three groups, the EPA, the California Air Resources Board, and Volkswagen (VW), have been granted a further time in a court-mandated deadline to come up with plans for updates to 580,000 affected vehicles.

It is not easy to figure out modifications as there are almost 600,000 vehicles, more than a dozen models and four entirely different combinations of engine and emission system. The authorities have cleared that they want to have clear information on how the revised powertrains will function under the given circumstances.

The current deadline is of April 21. Though Judge Robert Breyer has said that six month time-period is sufficient, it seems that it may take longer. All the three parties have agreed that progress is taking place at good pace, but they have not yet reached on the agreement.

Volkswagen will face more loss than expected. Since the scandal has come into public in mid-September, analysts have been warning about the costs. The company has set aside €6.5 billion in September to cover the costs of addressing the scandal. But there are many who do not consider it even a fraction of the total cost the company could face.

If Volkswagen is left with no option but to buy back any significant number of the 325,000 North American cars fitted with 2.0-liter TDI engines without Selective Catalytic Reduction systems then it could consume a major portion of the budget. However, this situation seems highly unlikely.

The biggest concern is the cost of fines and compensation to settle the hundreds of lawsuits and investigations by individuals, state and national governments. For now, it is not sure whether any VW, Audi, or Porsche diesel vehicles will be certified for sale in time for the 2016 model year. Also, it will take a long time before public trust is reformed.


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