Volkswagen AG’s efforts to fix diesel cars with rigged emissions systems are set to drag on through at least the end of 2016, signaling the long road ahead for the automaker to emerge from the scandal.
VW said it has presented proposals to German authorities in the first stage of a global recall but cautioned that the mix of technology and differences in local regulations will complicate the task of fixing the cars.
That uncertainty leaves owners of nearly 11 million cars worldwide largely in the dark about the extent of the repairs needed and how their vehicles will perform afterward.
After installing software designed to fool U.S. pollution testers since 2009 and covering it up for almost a year, Volkswagen faces costs and lost revenue from its damaged image of more than 35 billion euros, or $39 billion, Warburg Research estimates.
To cushion the blow, VW is delaying or canceling non-essential projects after determining that the 6.5 billion euros set aside so far won’t be enough.
VW has repeatedly said thoroughness is more important than speed in determining how to fix the vehicles. The Wolfsburg, Germany-based company has also pleaded for patience, as the issue affects four brands and multiple models around the world, including about 8 million cars in the European Union and 482,000 in the U.S.
“We’re facing not just three solutions but thousands” of repair options because of each vehicle’s mix of technology and national regulatory differences, said CEO Matthias Mueller to Frankfurter Allgemeine Zeitung in an interview.
Volkswagen informed German authorities about its plans this week, he said, adding that the recalls will start in January and last through 2016 if authorities approve the response.
Most cars probably only need software reprogramming that can be done at a local service outlet, though some will need new injector systems or some rebuilding at special workshops to install larger catalytic converters, the CEO said. Replacing cars will be considered in “particular cases,” he said.
