The European company, after admitting to installing software that manipulates emissions test results to millions of its vehicles recalled all Volkswagen diesel cars, 8.5 million in Europe and 2.4 million in Germany which were installed with the manipulation software under the order of the German Federal Motor Transport Authority (KBA).
The cheating scandal is believed to have cost the company $18 billion. In April, the German carmaker mentioned that they might have to sell some of their assets to shoulder the bill. Since the scandal, Volkswagen has struck deals in the U.S. to settle legal disputes and civil settlements.
The recall, which the KBA has approved the recall to small 1.2-liter engine cars like Volkswagen’s Polo and Seat Ibiza. The recall and retrofitting were first announced in May but was delayed later on. Repair shops will now have to be contacted for car owners to get their cars serviced.
The servicing of affected 2.9-liter engines started earlier this year and is currently being followed up by the recall and update of the EA189 types.
According to Volkswagen, the owners of the said cars have all been informed regarding the recall and that they can now make early appointments with their respective authorized workshops to have the repairs done.
The KBA has now approved and confirmed without any limitations to the technical solutions for the mentioned vehicles do not cause changes to the level of consumption, performance data, noise consumptions or fuel consumption levels.
Billion dollar investment in Solar Power
After building 67,000 plug-in vehicles last year, the German carmaker may now work on home energy storage systems that may be used to charge electric vehicles. According to Reuters, the company may work with the German solar power equipment-maker SMA Solar on this project.
This is one of the moves that the German carmaker is taking to distance itself from the emissions-testing systems scandal. Volkswagen is now committing to invest billions of dollars in withdrawing from diesel-powered cars.
Ongoing disputes and settlements
Just last week, investor lawsuits from Germany are now allowed to charge damages of up to 4 billion Euros or $4.5 billion by a German court to Volkswagen’s actions particularly the rigging of diesel-powered vehicles to cheat emission tests.
The company also reached a settlement with the U.S. environmental authorities, state attorneys, and customers that were affected by the scandal worth almost $15 billion. The settlement also enclosed a provision that involves the automaker investing $2 billion in the infrastructure of recharging plug-in vehicles.
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