The recent Volkswagen emission scandal is said to affect 11 million vehicles, which will require the company to set aside $7.3 Billion to fix software that manipulates tests that measure emissions.
USA Today reports that the admission makes the Volkswagen emissions problem the biggest automotive scandal in recent history.
The scandal will likely have a very negative impact on Volkswagen’s path to becoming one the world’s top automaker, a title that formerly belonged to Toyota, until the majority of 2015.
Coinciding with the scandal, is the renewal period for Volkswagen CEO Martin Winterkorn who, despite pledges to fix the issue and regain public trust, could lose his job at the Automotive Board meeting Friday.
The CEO has shown no immediate plans to resign from his position. In a video statement, Wintercorn said, “We are working very hard on the necessary technical solutions. And we will do everything we can to avert damage to our customers and employees. I give you my word: we will do all of this with the greatest possible openness and transparency.”
Stock for Volkswagen has dropped 18% since the scandal came to light, after the U.S. Environmental Protection Agency accused the automaker of installing manipulative software to alter emissions test results on over 500,000 vehicles.
The software tricks tests into reading that vehicles meet emissions standards, but instead, are releasing pollutants at a 40% higher rate than what is acceptable.
The scandal has prompted an investigation from the U.S. Justice Department, independent from the ongoing investigation by the U.S. Environmental Protection Agency. Foreign institutions will be launching their own investigations.
The Environmental Protection Agency could issue a fine around $18 Billion, roughly $37,500 per vehicle affected. The EPA says that the vehicles affected are four-cylinder diesel versions of the Jetta, Beetle, and Golf, from 2009 through 2015, Audi A3’s from 2009-2015, and the 2014-2015 Passats.