VW Jetta

German automaker Volkswagen has earmarked €6.5bn in its third-quarter earnings to cover the costs associated with the charges of rigging the US diesel car emissions tests.

Last week, the US Environmental Protection Agency (EPA) said that the four-cylinder Volkswagen and Audi diesel cars built between 2009 and 2015 feature software that deceived EPA emissions standards for certain air pollutants.

The sophisticated software algorithm, labelled as the ‘defeat device’ in certain Volkswagen models is said to turn on full emissions controls when the car is undergoing official testing.

According to EPA, the defeat device allows cars to emit nitrogen oxides (NOx) at up to 40 times the standard during normal operation, in violation of the Clean Air Act.

The allegations cover approximately 482,000 diesel passenger cars, including the Audi A3 and the VW Jetta, Beetle, Golf, and Passat models.

"Volkswagen confirmed the presence of defeat devices in its cars, and also noted that the rigged emission tests could affect 11 million of its vehicles across the world."

Volkswagen confirmed the presence of defeat devices in its cars, and also noted that the rigged emission tests could affect 11 million of its vehicles across the world.

The company had already been directed to recall 500,000 cars in the US.

Volkswagen CEO Dr Martin Winterkorn said: "The board of management at Volkswagen takes these findings very seriously.

"We will cooperate fully with the responsible agencies, with transparency and urgency, to clearly, openly, and completely establish all of the facts of this case. Volkswagen has ordered an external investigation of this matter."

The automotive company has also hinted that it will have to set aside an additional amount as diesel cars with Type EA 189 engines that have reported a ‘noticeable deviation’ in emission levels between testing and road use, reported Reuters.

Meanwhile, the EPA noted that Volkswagen may have to pay up to $18bn in penalties to resolve the scandal.

Additionally, a source with knowledge of the matter told the news agency that the US Justice Department has launched a criminal investigation on Volkswagen.

Image: Volkswagen Jetta 2011 model. Photo: courtesy of Anonyme 3111.