thats a lot of cars....
The CEO of Volkswagen says he is "endlessly sorry" for the ongoing emissions scandal that has now widened to include 11 million cars, but pushed back at calls for his ouster by saying he is committed to getting to the bottom of the mess.
Martin Winterkorn made the statement in a video message after the automaker admitted that some 11 million cars worldwide had been affixed with software designed to ace emissions tests when in reality the cars had nowhere near the same readings under normal use. In some cases, the vehicles would be emitting as much as 40 times the allowable pollution limit, despite having passed official emissions tests with flying colours.
thats a lot of money....
The German automaker said it will set aside 6.5 billion euros ($9.6 billion Cdn) in its current quarter to deal with repairs and other service issues related to the recall of 11 million vehicles worldwide.
The company's Canadian arm says five diesel models are affected, including:
The VW Jetta — model years 2009-15.
The VW Golf — from 2010-15.
The VW Beetle — from 2013-15.
The VW Passat — from 2012-15.
The VW Golf Wagon/Sportwagon — from 2009-15.
About 25 per cent of Volkswagen's vehicles worldwide are affected, but the figure is more than all the cars that Volkswagen sold last year. At least two class action lawsuits have been launched in the U.S. seeking punitive damages on behalf of former drivers and buyers.
The $9.6-billion figure cited by the company is merely for the actual repair work, and doesn't include any fines or legal costs. The EPA has indicated that it could, in theory, fine VW up to $18 billion.
On Tuesday, Environment Canada said it had begun an investigation into use of a "defeat device" to get around emissions testing rules to determine if there had been a violation of Canadian law.
Approximately 100,000 Volkswagen and Audi four-cylinder diesel cars of the model years 2009-2015 were sold in Canada, it said.
Many have suggested the true cost will end up being much, much more. "I don't think this is a life-threatening event, but it's clear it's going to be very expensive," said Christian Stadler, professor of strategic management at Warwick Business School.
