Volkswagen to have $7.3 billion set aside for upcoming diesel repairs, admits to have cheated all over the globe

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The German automaker, the largest in the world in terms of sales (interim), has announced the diesel emission crisis will engulf 11 million vehicles around the world. The company has also added it would set aside 6.5 billion euros ($7.3 billion) as it computed an initial tally of the total repair costs. The company also saw its shares further dropping after Monday’s 19 percent plunge due to the announcement, bringing the total drop to 37 percent in just two days. That means the group has lost 4 billion euros in market value, with numerous investigations into the cheating on diesel emission tests widening around the world. Regulators from Germany, France, South Korea and Italy have joined their US peers in scrutinizing the vehicles produced by the carmaker. Reports are now pointing towards a special meeting of the executive committee of the automaker’s supervisory board set for Wednesday. “It’s not just a U.S. matter for VW — you have regulators all over the globe looking into it with potentially numerous fines to come,” comments Vincenzo Longo, a strategist for IG Group in Milan. Chief executive officer Martin Winterkorn has so far stepped up to address the scrutiny after the US Environmental Protection Agency declared on Friday the company had malevolently eschewed air pollution probes. “Volkswagen is working at full speed to clarify irregularities concerning a particular software used in diesel engines,” commented recently the Wolfsburg-based company. The $7.3 billion provision could also surge as the probes develop, with expected earnings forecasts to be adjusted accordingly to consider the effects of the scandal. Via Bloomberg