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

Interest Rates Further Squeeze Auto Consumers
Last month’s hike and a potential second increase this month add to a growing list of inflation woes that could continue to dent overall car sales.
Read More →
Mind Your Process
Consistent steps taken in various aspects of the F&I office can make valuable differences over time, similar to an outline for a best-selling book.
Read More →
Top Five Credit Application Fraud Flags
Compliance audits regularly reveal bad habits that can lead to fraud charges and should have been stamped out decades ago.
Read More →
More Auto Loans for the Taking in August
Riskier categories were on the uptick for the month as lenders loosened access in several areas while balancing out the exposure in another, Cox Automotive reported.
Read More →
July Was Hot for Auto Borrowers
Credit proved readily available for many, but most loans left buyers in negative territory, Cox Automotive said.
Read More →
Dealer Lender Preferences Revealed
When lenders provide consistent, fast service, their overall satisfaction scores with dealers greatly improve, according to JD Power research.
Read More →
Auto Refi Savings Surge
Consumers with 84-month auto loan terms who refinanced saved the most on monthly payments, according to a new report by auto refinancing provider Caribou.
Read More →
Subaru Enters Lending Business
The automaker follows other brands in adding captive financing in the U.S., and says the move will strengthen its position here.
Read More →
Positive Equity Reaches Record High
Mainstream vehicle owners who bought a car seven years ago are likely to have positive equity when trading in for a new vehicle, according to second-quarter Edmunds data.
Read More →
Dealerships Are Paying the Price for Extended Car Loans
Growing negative-equity scenarios mean such lengthy terms should be addressed in a forward-looking way to make them work for the dealer and the consumer down the road.
Read More →