VW facing a huge challenge about what to do with emission-cheating diesel cars it is being forced to buy back.
The buyback – a costly logistical headache – is part of the penance for Volkswagen’s years-long scheme to circumvent US emissions regulations.
The automaker sold half a million diesel vehicles with software that activated stronger emissions controls during government lab tests but were inactive in the real world – when nitrogen oxide emissions surged to as much as 40 per cent above legal limits.
Six VW executives have been indicted and the company has set aside nearly US$24 billion (NZ34.4b) to cover cheat-related costs including more than NZ$14.3b to buy back vehicles in the US.
A second buyback of around 20,000 3.0-litre diesel cars is expected to start in the coming months.