emissions cheating scandal

California regulators on Tuesday rejected Volkswagen’s recall plan for some of the German automaker’s most popular diesel models that used software to intentionally deceive government emissions tests, including the Beetle, Jetta, Golf and Passat.

The Justice Department sued Volkswagen on Monday over emissions-cheating software found in nearly 600,000 vehicles sold in the United States, potentially exposing the company to billions of dollars in penalties for clean air violations.

A judicial panel on Tuesday decided to consolidate hundreds of lawsuits against Volkswagen over its emissions cheating scandal in California, a focal point of the carmaker’s troubles.

Volkswagen will cut its spending by 1 billion euros ($1.07 billion) next year and “strictly prioritize” investments as it shores up its finances to deal with its emissions-rigging scandal, CEO Matthias Mueller said Friday after a board meeting.

Volkswagen’s emissions cheating scandal widened Friday after the U.S. Environmental Protection Agency said the German automaker used software to cheat on pollution tests on more six-cylinder diesel vehicles than originally thought.