October 7, 2015 — Volkswagen (VW) has announced it will launch a massive recall of diesel-powered cars in Europe by January 2016, with the goal of repairing all cars with the EA 189 engine by the end of the year.
The announcement was made by Matthias Müller, former head of Porsche who was named CEO of VW after Martin Winterkorn resigned in the wake of the emissions scandal.
Müller said some of the vehicles will require new fuel injection equipment and catalytic converters. A software update should be sufficient for most cars, but could noticeably impact performance and fuel-efficiency.
The timeline applies only to cars in Europe and no timeline has been set for recalls in the United States, CBS News reports. For the American market, the recall will first have to be approved by the Environmental Protection Agency (EPA).
VW plunged into crisis on September 18, when the EPA cited the car-maker for installing illegal software on diesel vehicles to cheat on emissions tests. On the road, the cars emitted up to 40X the acceptable level of nitrogen oxide.
The Wall Street Journal reports that resale value on VW diesel cars in the U.S. have taken a hit, falling an average of 13%, or about $1,700 per vehicle since mid-September, according to the used-car pricing guide Kelley Blue Book.