VW May Miss April 21 Deadline on Diesel Deal

Volkswagen AG and the Environmental Protection Agency are in “really robust” discussions about settling VW's diesel emission cheating scandal, according to EPA Administrator Gina McCarthy. But she tells reporters the parties may not meet an already-extended April 21 deadline for agreement.

U.S. District Judge Charles Breyer had originally given VW until March 24 to come up with a recall plan to fix 580,000 diesels that had been rigged to circumvent U.S. emission limits. A solution is expected to include repairs, vehicle buybacks and two VW-funded restitution programs.

Last month Breyer gave VW an additional four weeks to reach a deal with EPA and the California Air Resources Board. He also threatened to begin a trial this summer to resolve hundreds of consumer lawsuits against VW if the carmaker can’t settle the issue.

McCarthy cautions observers not to infer “where any final agreement, if we reach one, will end up.” The parties have been negotiating with varying intensity since EPA revealed the scandal in mid-September.