BERLIN (Reuters) -- The steps needed to fix about 8.5 million Volkswagen cars in Europe fitted with illegal emissions-control software are technically and financially manageable, the German automaker's CEO said today.
Analysts have said the costs of fines, lawsuits and vehicle refits caused by VW's rigging of diesel emissions tests could top 40 billion euros ($42 billion).
"The efforts (needed) to carry out the refits are technically, mechanically and financially manageable," CEO Matthias Mueller said in a speech to managers at the company's Wolfsburg base. "This is a good development."
VW has set aside 6.7 billion euros to help cover the costs of the diesel recalls and another 2 billion for compensation payments related to its manipulations of carbon dioxide emission levels.
Europe's largest automaker has the approval of Germany's KBA motoring watchdog for fixes for more than 90 percent of the affected cars, including models with 1.6-liter and 2-liter engines, Mueller said, adding technical solutions for 1.2 liter vehicles will be presented by the end of the month.
The CEO warned clearing up the emissions scandal would still take several months, though VW plans to publish intermediate results of the investigation next month.
"Investigations are running at full speed," the CEO said in the text of a speech to managers seen by Reuters. "To avoid raising false expectations, we are talking about very complex processes which in part date back a long time."