Volkswagen has until January 14 for the California Air Resources Board to accept the automaker's recall plan for its polluting diesel engines, and an anonymous VW insider now alleges to Reuters that the business is having a hard time agreeing with regulators on the solution. Company officials will reportedly discuss the situation with CARB this week, and VW Group boss Matthias Müller will also meet with the Environmental Protection Agency after the Detroit Auto Show next week to work things out.

According to Reuters' source, VW faces a big problem: its emissions fix in the US may require fitting the vehicles with new hardware. These components need testing, and that process eats up the company's limited time. However, engineers at the automaker continue to work to have the repair ready to present to regulators.

In Europe, the less stringent diesel emissions standards allowed VW to install a software update to make the 2.0 TDI compliant, and the 1.6-liter engine also required the installation of a small piece of mesh. However, stricter rules in the US force the company to create different repairs here.

While VW attempts to fix the emissions-cheating engines in the US, it now also faces a lawsuit from the Department of Justice for violations of the Clean Air Act. The automaker could pay billions in fines for the infractions, but the actual amount would likely be far lower. According to anonymous DOJ officials to Reuters, the government brought as many charges as possible against the company under the expectation VW wouldn't face the maximum punishment.

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