Volkswagen scandal: 11 million cars to be recalled in January

New Volkswagen CEO Matthias Mueller

Volkswagen is set to recall all vehicles associated with the emissions rigging debacle. The diesel cars at the heart of a global scandal will be fixed by the end of 2016, according to VW's new CEO Matthias Mueller. The company has set aside £4.8m to cover the costs of the recall.

"If everything goes as planned, we can start the recall in January," Mueller, who was appointed CEO at the height of the scandal, told Frankfurter Allgemeine Zeitung. "All the cars should be in order by the end of 2016."

Up to 11 million vehicles around the world are said to be rigged with emissions cheating software -- 8 million of which are in Europe. As many as 1.18 million vehicles in the UK are said to be affected. They include:

393,450 Audis

76,773 Seats

131,569 Skodas

508,276 Volkswagen cars

79,838 Volkswagen commercial vehicles 

The fault lies in the EA 189 diesel engine, various transmissions and some country-specific designs. In most cases a software update will fix vehicles. But some will need new injectors and catalysers, according to Mueller. Volkswagen is likely to set up a temporary workshop dedicated to fixing the faults.

Mueller said only a few developers knew about the manipulated cars and that top management was unaware. Four employees, including three senior managers responsible for engine development, have already been suspended. Other have already retired, according to Mueller. "Massive cuts" would be needed to make up for the losses, he added.

Volkswagen made a "serious mistake," said Mueller. "We must answer for that [...] But bear in mind that there were no dead with us; our cars were and are safe."

Fines are yet to be levied against the company -- the maximum fine in the US alone could be as high as £11.7bn. Volkswagen should be able to raise about £30bn before having to sell assets, Reuters reported.