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VW signals recall but problems persist

Wednesday, October 07, 2015 - 01:39

Volkswagen's supervisory board is to decide its next measures in the emissions scandal. As Ivor Bennett reports, it's thought a recall for cars affected by its diesel emissions crisis will begin in January

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One team, one family - but for how long? despite their support, employees know the future is bleak. (SOUNDBITE) (German) VW EMPLOYEE PETRA SKOTZYLAS SAYING: "I think it would be the next mistake to say jobs are safe. You can't. How can anyone? It's impossible." Volkswagen CEO Matthias Mueller has warned there will be massive cuts as the company switches to crisis mode. All projects are now under review; any future investment not deemed necessary abandoned. Jeremy Cook from World First. SOUNDBITE (English) JEREMY COOK, CHIEF ECONOMIST, WORLD FIRST, SAYING: "There's a lot of people talking about 'hey, you can probably get a cheap Golf right now' but obviously in the longer term point of view if you believe that you can get a cheap Golf right now but Volkswagen won't be around in two years' time then people aren't going to be buying them because there isn't going to be anyone around the service the car." The company's said it will launch a mass recall in January. as it hopes to meet a deadline from Germany's regulator for a plan to make its cars compliant. More costly though are the potential legal battles. Of the 11 million cars affected by the emissions scandal worldwide, 8 million are in Europe. Where they still could be found to have cheated emissions tests too. Accendo Markets' Mike Van Dulken. SOUNDBITE (English) MIKE VAN DULKEN, HEAD OF RESEARCH, ACCENDO MARKETS, SAYING: "The number that we can't really quantify is the damage to the image. And what kind of discounts they're going to have to offer on existing and new stock to keep people interested. Who knows how long that's going to go on for?" Mueller predicts VW will be back on track within three years. But that's looking increasingly optimistic as the scandal continues to widen. Australia the latest point of contact, where nearly 80,000 vehicles are affected.

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VW signals recall but problems persist

Wednesday, October 07, 2015 - 01:39