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Volkswagen Vehicles in China Recalled

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In September, Volkswagen admitted to installing software on its diesel vehicles so that they would illegally pass U.S. emissions tests.  This affects 11 million vehicles worldwide, including in China.  VW therefore recalled 2,000 cars that were exported to China with the false emissions software.  The Chinese vehicles affected are mainly Tiguan models.  Analysts say that customers in China have not lost all confidence in VW, but the sales had already been weak due to China's economy and the new scandal will cause further weakness for Volkswagen in China.  VW has set aside $7.4 billion in anticipation of the costs required to cover the scandal worldwide.  Company shares are down more than 20% since the scandal came to light in September.

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