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.