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On September 29, 2015, Reuters reports that Volkswagen plans to issue a worldwide recall for all 11 million diesel vehicles equipped with software designed to cheat on emissions tests.  One would expect VW to repair the diesel vehicles but what is surprising is that VW plans to begin the recall process “in the next few days”.

Volkswagen’s new CEO, Matthias Muller, made the announcement.  The former CEO, Martin Winterkorn was forced out.  It has been noted that Muller might be trying to fast-track VW’s rebound from a laughingstock to “world’s biggest automaker”.

The software was installed on vehicles sold in the US, Germany, Australia, Sweden and other countries.  This will call for much investigation which will involve multiple testimonies, legal fees and fines.  We have learned that 2.1 Audi vehicles are equipped with the software and 1.2 million made by Skoda.

We have read that there is no easy fix for the diesel emissions issue.  This could create more headaches for VW.  It appears that VW and Audi are planning to upgrade the software on their vehicles.  This creates a new set of issues with federal regulations and class action lawsuits from customers.

Volkswagen has set aside somewhere between $6 billion and $7.5 billion to resolve the “Dieselgate” issue.  Will this be enough after fixes, fines, lawsuits and the like???  And, more importantly, will people trust the name Volkswagen any longer and what does that mean for VW’s future?


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