German automotive watchdog KBA orders Volkswagen to recall 2.4 million vehicles in the country after Europe's biggest carmaker admitted to cheating on emissions tests for diesel vehicles. Ivor Bennett reports
The quicker the clean up, the quicker the recovery But for German authorities, it hasn't come fast enough at VW. Industry watchdog KBA has ordered the company to recall 2.4 million vehicles, after reportedly rejecting its proposal to leave it up to customers. Transport Minister Alexander Dobrindt. (SOUNDBITE) (German) GERMAN TRANSPORT MINISTER, ALEXANDER DOBRINDT, SAYING: "The KBA believes this to be a case of software using an unreliable defeat device. VW must now remove the corresponding software from all vehicles and take the necessary steps to ensure compliance with emission regulations." It's nearly a month since the emissions scandal first surfaced at Volkswagen But it's still not clear who did what and when. A response that's been heavily criticised by consumers and investors. But Citi's Christian Schulz thinks they're doing the right thing. SOUNDBITE (English) CHRISTIAN SCHULZ, ECONOMIST, CITI, SAYING: "There is a balance to be struck between clearing it up as quickly as possible but at the same time to be as thorough as possible in order to get a clearer picture of what it will actually cost in the end." VW has set aside 6.5 billion euros. But some analysts think the final cost will be five times that, as refits, fines and lawsuits continue to mount. Italy the latest to pile on the pressure, with simultaneous police raids on VW's Verona headquarters and the offices of Lamborghini. As if things couldn't get any worse... the company's just lost one of its most trusted directors. Winfried Vahland, the man poised to take over VW's North American arm, has quit, citing differences over the division's operations.