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VW signals recall of 11 million cars

Tuesday, September 29, 2015 - 01:17

New Volkswagen chief executive Matthias Mueller said the carmaker has drawn up a ''comprehensive'' action plan to ensure that its diesel models will be able to meet emission standards. Tim Graham reports.

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Damage control goes up a gear at the world's biggest carmaker. Volkswagen signalling plans to recall 11 million vehicles caught up in the emissions scandal, as it prepares to approach customers with defective cars. The action plan unveiled by new chief executive Matthias Mueller, in a closed-door meeting with 1000 top managers at the company's headquarters. JP Morgan's Michael Bell. (SOUNDBITE) (English) MICHAEL BELL, JP MORGAN ANALYST, SAYING: "I think the truth is, at the moment, no one really knows quite how widespread this is. Obviously it's a significant issue for Volkswagen. If it spreads across the industry that would be pretty concerning for the sector in general, certainly." Evidence of the crisis spreading isn't hard to find. Hungary is now implicated. It says about two million of the rigged engines were made at this Audi plant in the country's west. Volkswagen has announced plans to overhaul its namesake brand, to try to move on from the scandal. Aside from its reputation, the car maker's bottom line is also gearing up to take a battering. Some analysts predict the cost of refitting cars alone could run to more than six-and-a-half billion dollars. That would use up nearly all of the money VW has set aside so far to cover the cost of the crisis.

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VW signals recall of 11 million cars

Tuesday, September 29, 2015 - 01:17