No fines have yet been imposed on VW following revelations that the company has been ‘cheating’ emissions regulations, but we’re all ready getting a good picture of just how expensive this scandal will be for the company. VW announced today that 11 million cars worldwide fitted with the ‘Type EA 189’ diesel engine are affected, and said it would be setting aside €6.5 billion to "cover the necessary service measures and other efforts to win back the trust of our customers."
€6.5 billion (£4.7bn, $7.2bn) sounds like a pretty damn significant figure, but it’s only part of the financial pain for VW Group. The company has seen around 20 per cent and many billions of dollars wiped from its share prices, and that’s before you think about fines, which could add up to as much as $18 billion.
Meanwhile, VAG has clarified that cars in Europe aren’t affected, stating that EU 6-compliant vehicles sold in the European Union "comply with legal requirements and environmental standards."