VW new emissions scandal allegations: Culture of fear

The emissions-testing scandal at Volkswagon has now widened with new allegations. This led to a drop in shares in VW after it reported "irregularities" in carbon dioxide emissions levels, which could affect around 800,000 cars in Europe.

Arndt Ellinghorst, who used to work for VW and is now head of automotive research at investment firm Evercore said:

"We estimate the whole recall will cost VW around €28bn over time, even that is manageable but if this goes further, then VW might have to start selling parts of their business."

"The question is how painful will it be to change the culture (at VW) and how long will it take the new management."

The firm said the problem, which it came across while investigating diesel emissions, could cost about €2bn (£1.4bn).

Brands including VW, Audi, Skoda and Seat could be affected, a VW spokesman told BBC News. The issue mainly affects diesels, but could also include petrol models.