Volkswagen and EPA fail to break the deadlock

Volkswagen and EPA fail to break the deadlock

On January 14th, Volkswagen Automotive and US Environmental Regulatory officials did not announce breakthroughs in the dialogue after Volkswagen CEO held talks with the US Environmental Protection Agency (EPA) director. This raises doubts about whether Volkswagen can quickly resolve the emissions fraud scandal after negotiating with U.S. officials for several months.

The public CEO Matthias Muller and the EPA director Gina McCarthy each made almost the same brief statement, thanking the other party for taking the time to meet and promise to continue the dialogue.

Both parties did not say any progress was made in the one-hour talks that took place at the EPA's office in Washington, DC. The day before the meeting, which was called upon by the public, California's regulatory authorities rejected plans from Volkswagen to repair nearly 500,000 diesel vehicles that had been modified to cheat in emission tests. California regulators said the plan was ambiguous and incomplete. The EPA said that they agree with the assessment of the California regulatory authorities.

Analysts said that Volkswagen's engineers and EPA officials are still in technical negotiations and may reach an agreement; but due to the unresolved matter, Volkswagen will be difficult to regain the trust of US consumers and other stakeholders. In September last year, regulators exposed the behavior of counterfeiting. Volkswagen later admitted that the company has installed emissions testing software on some diesel vehicles.

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