Volkswagen emissions scandal hits 11m vehicles

Volkswagen says 11 million vehicles worldwide are involved in the scandal that has erupted over its rigging of US car emissions tests.

It said it was setting aside €6.5bn (£4.7bn) to cover costs of the scandal.

VW chief executive Martin Winterkorn issued a fresh apology for the test-rigging, saying he was "endlessly sorry" for the "manipulation".

Earlier, the boss of Volkswagen's US business, Michael Horn, admitted the firm "totally screwed up".

In the UK, the Department of Transport has added its voice to calls for an EU-wide investigation into the affair.

VW shares were down almost 17% on Tuesday in Frankfurt, after losing 19% on Monday.
Analysis: Damien McGuinness, BBC Berlin

Cars and the environment - two things that Germany cares so deeply about that they form part of the national character.

So Germans are shocked to discover that for years the country's mightiest car manufacturer Volkswagen has been rigging environmental tests for diesel emissions in the US.

It's as if the British suddenly found out that the Queen had a hand in fixing the horse races at Ascot.

One German newspaper has called it the "most expensive act of stupidity in the history of the car industry".

Stupid because manipulating pollution data to boost sales can only be seen as a slap in the face to customers who paid a premium for what they thought was a greener car.

Since the company owned up, its shares have plummeted by more than a third in just two days.

Last Friday, the US Environmental Protection Agency (EPA) said VW diesel cars had much higher emissions than tests had suggested and that software in several diesel cars could deceive regulators.

Mr Winterkorn said VW would co-operate fully with the US authorities.

In a video statement on the company's website, he said it had "betrayed the trust" of millions of people.

He added: "Swift and comprehensive clarification has now utmost priority.

"To make it very clear, manipulation at VW must never happen again."

In an earlier statement, VW said provision for the scandal would be made "in the profit and loss statement in the third quarter of the current fiscal year". This would pay for "necessary service measures and other efforts to win back the trust of our customers".

It added: "Due to the ongoing investigations, the amounts estimated may be subject to revaluation."

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