Emission Scandal: Volkswagen Begins Recall of Diesel Cars in Europe

Volkswagen (VW) has begun recalling millions of its diesel cars fitted with devices designed to cheat emission tests in Europe after German authorities gave the green light to their recall plan. The scandal-hit German carmaker, however, is no closer to a deal with US officials over how to fix the affected cars owned by American consumers.

Germany's Federal Transport Authority said Volkswagen can "now start recalling and refitting" 2.0-litre Amarok models hit by the scandal. It added that it was still examining Volkswagen's proposals for other models.

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Volkswagen slumped into a scandal of global proportions after it admitted in September that it had fitted 11 million diesel engines worldwide with devices aimed at cheating emissions tests.

It is under investigation in several countries, including the US, where authorities first uncovered the scam and have now filed a lawsuit against Volkswagen.

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US authorities have also rejected Volkswagen's first proposals to fix affected 2.0 litre cars.

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Besides facing billions in potential fines, the scandal has also hit Volkswagen's shares hard - wiping out nearly 40 per cent in market capitalisation since September even if they have come off their lows since then.

(With inputs from Agencies)