Volkswagen’s recall of cars with emission defaults the most expensive ever!

Volkswagen is repairing more than 10 million diesel vehicles after they were recalled in the wake of the company's diesel emissions scandal. The German carmaker is working to bring emissions systems into compliance with pollution regulations which is one of the most complex and costly fixes in automotive history till date.

The company has to install parts for vehicles already on the road that were not designed in a way to accommodate the equipment. The work may need to be done in special shops set up for the purpose. The company has to pass muster with dozens of countries with their own regulations.

The cost of repairing is only part of what Volkswagen is going to have to spend to get through a corporate crisis sparked by revelations it rigged its diesel cars for years to fool emissions tests.

Moreover it is also compensating dealers for keeping those cars which could be sold.

The company is already facing over 300 consumer lawsuits in the US and has hired US law firm Jones Day to conduct an internal investigation into the company's actions.

Adding in likely fines, settlements with the US Environmental Protection Agency, state authorities, the Justice Department and dozens of countries in Europe, and the cost could exceed 30 billion ($34 billion), according to the Center of Automotive Management in Bergisch Gladbach, Germany.

(Image: Indiatimes)