California Air Resources Board Rejects Volkswagen Recall Plan
CARB rejected Volkswagen's recall plan because it contained gaps and lacked sufficient detail. The agency said Volkswagen’s descriptions of proposed repairs lacked enough information for a technical evaluation and did not adequately address overall impacts on vehicle performance, emissions and safety.
SACRAMENTO — The California Air Resources Board (CARB) has rejected Volkswagen’s submitted recall plan for 2-liter diesel passenger vehicles sold in California between 2009 and 2015. Along with the rejection, the agency notified Volkswagen of violations of California air quality regulations tied to the company’s use of “defeat device” in those vehicles.
CARB rejected Volkswagen's recall plan because it contained gaps and lacked sufficient detail. Additionally, the board said Volkswagen’s descriptions of proposed repairs lacked enough information for a technical evaluation and did not adequately address overall impacts on vehicle performance, emissions and safety.
“Volkswagen made a decision to cheat on emissions tests and then tried to cover it up,” said CARB Chair Mary D. Nichols. “They continued and compounded to lie and when they were caught they tried to deny it. The result is thousands of tons of nitrogen oxide that have harmed health of Californians. They need to make it right. Today’s action is a step in the direction of assuring that will happen.”
The board’s rejection does not remove the possibility of a recall, but allows for a broader array of potential remedies. According to the agency, CARB will continue its investigations with the Environmental Protection Agency to return the vehicles to legally required emission levels, determine mitigation for past and future environmental harm, and assess penalties.
“The rejection is not a surprise. Volkswagen has been working on an additional potential fix involving the catalytic converter. Those details have not been worked out,” said Rebecca Linland, senior analyst at Kelley Blue Book. “The reasons for the rejection involve needing more details and specifications. This is not a major setback. If they present them with another plan and that’s rejected, we can start to see some real concern. However, it’s unfortunate because it continues to delay getting consumers the answers and solutions they want, need and deserve.”
More Auto Finance

Mastering Credit Friction
In this video, Josh Krach explains how to turn credit friction into an advantage.
Read More →
April Less Affordable
Based on prices, reduced incentives and slower household income growth, consumers found it more challenging to buy new last month, Cox Automotive reported.
Read More →
Auto Lenders, Consumers on a Tightrope
April borrowing data shows that more consumers are bending over backward to buy vehicles, though subprime lending cooled off for the month.
Read More →
Toyota Financial Services President Replaced
Scott Cooke has served in various roles with Toyota Financial Services for over 20 years, including president and CEO, which he retires from on June 30.
Read More →
Permission or Approval: When to Notify Finance Sources
Credit card down payments, multiple vehicle purchases and even straw purchases can be completed without committing bank fraud, as long as you tell the bank first.
Read More →
At-Risk Auto Borrowers Drive Looser Credit Access
Cox Automotive’s index shows the subprime segment, long loan terms, negative-equity borrowers and down payment amounts all grew in February despite ever-higher vehicle prices.
Read More →
Auto Loan Forecast Bucks Market Trend
Auto loan originations rose over 6% year-over-year in the third quarter of 2025, but TransUnion predicts a slight decline in auto loan growth this year, making it an outlier in the company's overall lending forecast.
Read More →
Auto Credit More Plentiful
Growing access shows greater lender appetite for risk as consumers take on heavier debt burden in an inflated market.
Read More →
Auto Loans Long as Stretch Limos
More consumers, faced with ever-rising car prices, are adapting by agreeing to longer loan terms despite the cost of added interest payments.
Read More →
AutoPayPlus Launches RePayPlus
The reinsured biweekly payment program offers auto dealers with customer retention and reinsurance structure.
Read More →