October 7, 2015 – Volkswagen’s supervisory board was holding crisis talks today, facing deadlines from German regulators and U.S lawmakers to explain its rigging of diesel emissions tests and what it is doing to tackle the scandal.
The 20-person board gathered at the German carmaker’s headquarters in Wolfsburg at around 9 a.m. (0700 GMT). Sources close to the matter said talks were likely to last for hours.
More than two weeks after it admitted to cheating U.S. emissions tests, Europe’s largest carmaker is under pressure to identify those responsible, to say how vehicles with illegal software will be fixed and whether it also cheated in Europe.
The biggest business crisis in Volkswagen’s 78-year history has wiped more than a third off its share price, forced out its long-time chief executive and sent shockwaves through both the global car industry and the German establishment.
Germany’s KBA watchdog has set Wednesday as a deadline for Volkswagen to spell out plans to make its diesel vehicles comply with emissions laws.
The company has said it may have to refit up to 11 million cars and vans worldwide, and new CEO Matthias Mueller said in a newspaper interview on Wednesday recalls would start in January and would be completed by the end of 2016.
But owners are anxious to know whether the refits will affect the fuel-economy and performance of their vehicles, and analysts also want to know the bill for the recall.
Equinet analysts said the cost could range from less than 100 euros (US$112) per vehicle to as much as 10,000 euros, depending on whether Volkswagen needs to upgrade software or install new hardware.
UBS analysts estimated the total bill for the scandal, including potential fines and lawsuits, could be around 35 billion euros, though they also noted this was more than factored into the company’s share price after its recent plunge.