Germany’s Volkswagen Ag, the world’s (interim) largest automaker by sales, has announced on Tuesday it would refit around 11 million autos and reshape its core passenger car brand in the aftermath of the scandal triggered by its cheating on diesel emission tests.
Last week long running CEO Martin Winterkorn resigned – and is now under investigation for fraud by German prosecutors – while the new chief executive officer has become the Porsche unit head Matthias Mueller. The top executive detailed that customers would be notified in the coming days if they would have their diesel vehicles with illegal software refitted. According to analysts and experts, repairing the huge amount of vehicles might cost the company more than $6.5 billion, which is almost the entire sum set aside during the third quarter financial booking for costs related to the scandal. Europe’s largest carmaker last week acknowledged it had rigged diesel emissions tests in the United States and following the revelation Germany’s transport minister claimed the automaker done the same in Europe, home to around 40 percent of VW’s deliveries.
“We are facing a long trudge and a lot of hard work,” commented recently Mueller during a secluded meeting of around 1,000 top managers at Volkswagen’s Wolfsburg headquarters late on Monday. The company is facing the largest scandal in its 78-year history and is under massive pressure to handle the crisis that has wiped the floor with its market cap – more than one third of market value was lost in the span of a week. VW did not detail how the repairs would impact regulation compliance or how they would affect the fuel economy – adding it would deliver them next month to Germany’s KBA authority.