It may be impossible to fix Volkswagen Group cars which have illegally high exhaust emssions, according to the California Air Resources Board.
An official of the board has said the state may allow partially repaired VW diesel cars to continue operating on its roads because a full fix may be impossible.
The agreement with being negotiated with VW also includes creating national and California funds to make amends for past and future environmental damage and solutions to reduce the pollution from the affected vehicles or remove them from the road under a scrappage scheme.
The affected cars are equipped with “defeat devices” that allow them to pass laboratory emissions tests despite exceeding federal standards by up to 40 times when they are driven on roads.
US legal officials have not given the German car maker until 21 April to say how its going to fix the cars or face escalating massive fines.
Buy-back costs to VW might be $9.4 Billion and this could be on top of the $46 Billiion being claimed by the US Justice Department for violating environmental legislation.
In future, VW in America is likely to engineer models it sells there rather than trust the Germany engineers and there is an embargo on all VW Group diesels being sold in the US this year.