No Deal On VW Recall Following EPA Meeting

Talks between Volkswagen executives and U.S. regulators on Wednesday reportedly failed to yield an agreement on a recall of some 500,000 diesel vehicles.

Both sides declined to elaborate on the closed-door meeting, but the discussions came and went without a resolution on how to fix VW vehicles that were equipped with software to manipulate its emissions levels during official tests.

VW CEO Matthias Mueller indicated earlier in the week that he would outline recall plans after months of negotiations between the company and the Environmental Protection Agency. Mueller and EPA Administrator Gina McCarthy each said following the meeting that their discussions would continue.

German authorities last month authorized a recall process in the European Union, where most of the vehicles implicated in the diesel emissions scandal are located.

In the U.S., however, the affected vehicles emit up to 40 times the amount of harmful nitrogen oxide permitted by the EPA, and extensive, complicated repairs to exhaust systems will likely be required.

The meeting came one day after California regulators rejected VW's proposed recall plan for diesel vehicles in that state.

In addition to the recall impasse, the EPA is suing VW in a case that could generate billions in penalties for the embattled automaker.