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Staff Photo by Dan Henry / The Chattanooga Times Free Press- 6/24/16. 2016 Volkswagen Golf Sportswagen test drive for the Chattanooga Times Free Press.

Volkswagen suffered a setback in its efforts to emerge from the 10-month-old emissions-cheating scandal as California regulators rejected a recall proposal for 85,000 diesel-powered vehicles, raising the prospect that the German carmaker will have to buy them back, according to Bloomberg.

The manufacturer's plan for fixing Volkswagen, Audi and Porsche models equipped with 3.0-liter engines rigged to cheat on emissions tests was inadequate, the California Air Resources Board said Wednesday in a statement.

The regulator, along with the U.S. Environmental Protection Agency, will continue talks with Volkswagen in hopes of finding a fix, CARB said in letters dated Wednesdayto Volkswagen executives and attorneys.

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