Volkswagen has revealed its plans to recall 8.5 million vehicles across the European Union over the ongoing dieselgate scandal.

About four weeks ago, the Volkswagen Group admitted to cheating diesel emissions testing in the United States by installing software which limited emissions when EPA tests were being conducted. It is said that about 11 million VW Group cars worldwide contain the illegal software and will have to be recalled.

The announcement of a European recall of 8.5 million vehicles comes on the back of an order from Germany’s KBA automotive watchdog. Of those vehicles, 2.4 million reside in Germany and the recalls and repairs should begin at the start of 2016. Importantly, all the recalls will be mandatory.

It is reported that once fines, lawsuits and vehicle repairs are accounted for, the scandal could cost the Volkswagen Group as much as $40 billion.

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