Volkswagen To Recall 2.46 Million Cars In Germany With Illegal Software: Report

Volkswagen AG, Europe’s largest carmaker, will have to recall 2.46 million cars in Germany fitted with illegal defeat devices that allowed the cars to flout emission norms, according to a report Monday in German newspaper Die Welt.

The newspaper said, according to Reuters, that the company will have to recall about 1.54 million German Volkswagen-branded cars along with 531,813 cars at Audi, 286,970 at Skoda and 104,197 at Seat. The report did not mention any source for the information.

In November, Volkswagen reportedly estimated that it would need to fix about 8.5 million cars in Europe. The automaker got approval from Germany's KBA motoring watchdog for fixes for more than 90 percent of the affected cars last week.

"The efforts [needed] to carry out the refits are technically, mechanically and financially manageable," Volkswagen Chief Executive Matthias Mueller said in a speech to managers at the company's headquarters in Wolfsburg. "This is a good development."

The emissions scandal, which saw Volkswagen recalling up to 11 million diesel vehicles worldwide, broke out in the U.S. on Sept. 18, where it was reported that the company violated norms by fitting a cheating software to pass the emissions tests in the country.

Analysts have said that the cost of fines, lawsuits and vehicle refits caused by Volkswagen's rigging of diesel emissions tests worldwide could top 40 billion euros ($42 billion).

A German newspaper, Bild am Sonntag, reported Sunday that top Volkswagen executives knew a year ago that some of the company's cars were markedly less fuel efficient than what had been officially stated. Volkswagen is yet to comment on the allegation, according to reports.

The company faces regulatory action in other parts of the world as well for falsifying emission levels and fuel efficiency figures. In India, it may have to recall about 100,000 cars after the automakers industry body -- the Automotive Research Association of India (ARAI) -- reportedly found a significant variation in the emission level in on-road vehicles compared with laboratory measurements.

South Korea also fined the company $12.3 million and ordered a recall of thousands of its diesel vehicles last week. Mueller reportedly said that the company’s internal investigation into the scandal is progressing slowly and it is still months away from determining who was responsible.