It has emerged that Volkswagen is setting aside around $7.3 billion to cover the fallout of its ongoing U.S. Emissions scandal.

On Friday, the Environmental Protection Agency in the United States discovered that Volkswagen had installed software on its cars to cheat EPA emissions testing. They did so by installing software which automatically switched the engine into a cleaner mode when being tested. It is reported that when running normally, the cars emit up to 40 times the pollution limit.

Volkswagen claims that there are 11 million of its diesel vehicles around the globe with the emissions-cheating software. The revelations have seen Volkswagen Group shares fall to a four-year low and will result in extensive recalls.

In a statement, the Germany company said that “a noticeable deviation between bench test results and actual road use was established solely for this type of engine. Volkswagen is working intensely to eliminate these deviations through technical measures.”

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