i'm a volkswagen fan for a long time. i'm shocked to the core that volkswagen would do this. i am sure the e.p.a. felt safe in their assumption that no automaker would cheat hat this level. 40 times. a few percentage over perhaps, that's probably the case. >> i think the scale may be off a little, but this is something of a magnitude. you heard the story, and the last expert made a comment that this is what customers remember forever. you wrote the fall out for vw will be astronomical. honestly, time and time again companies find themselves neck deep in scandal. ford and firestone, toyota with the break, general motors with the key, and now this. it comes out not only relatively un scathed. but guilt m showed more cars than they had solved history. do you think consumers care? >> yes, i think they do. >> the governments around the world will care. g.m. was in the u.s., and we had bailed them out. we are tied into this. we can't let them fail. we'd have a black eye on the government if we didn't let that go by. as to the consumer i can't say a lot of people by cars. a lot of t

of volkswagen? >> in general, people are happy it did not take long to find a successor, that it was but she is more was widely expected so it did not come as a big surprise. i also heard from many sources saying that you smaller is not a magician and there is a lot to do in the next couple of weeks and months. there's a lot of mistrust, a lot of anger in the united states. people feel cheated. we just heard the environmental protection agency will run tougher tests in the future that will probably increase costs, not just for vw but maybe for the entire industry. we also heard volkswagen is pulling the x4 the so. that is probably a good idea. we will see how it plays out the next couple of weeks. >> thank you very much. we will be back with more in just a minute. keep it here on dw. >> every ban and woman knows a child needs food are. >> we had a lot of problems. >> we were eating nothing coming from home. >> that could be any one of us. ♪ sarah: welcome back. you are watching "dw news." these ar

you look at volkswagen in the united states. it's really struggled to get a foot hold, and when they started pushing clean diesel vehicles back around 2006, 2007, their idea was we can ethwe'll get to one million in vehicle sales in the u.s. by 2018. the challenge is the diesel push was such a part of the message. clearly now that message was tabted by the idea that people were duped into the idea that -- now you have even your most loyal buyers saying i don't want to go near this brand for a while. where are you going to get your sales from? you don't have a lot of weak sisters in the auto business right now. it's not as if you can turn around and say, well, look, these guys aren't doing that well. that's the difference between vw and general motors. at least they were popular. i think the press conference is about to end, guys. >> we're going to listen to this. it may be in german, but we'll do what we can. this is volkswagen leadership introducing dr. winterkorn. [ speaking in german ] >> we knew this might be in a language w

we begin the program with the ongoing development at volkswagen. the german carmaker admitted it provided false emission test results in the united states. shares of the company plunged by 36% in two days. germany's transport minister suggested today that european cars could be affected as well. volkswagen's ceo martin winterkorn resigned. and the scandal is not even close to being over. joining the program from washington is the ceo and cofounder of business strategy from jti and a former daimler executive. , anddetroit, jamie butters from new york city lawrence , ulrich, the former auto critic for "the new york times." gentlemen, welcome. i have been looking at the vw scandal and wondering, if it does not very quickly become the biggest auto scandal of all time. but it is easy to feel that way today. let's put it into perspective. let's rate the vw's scandal on the timeline of scandals over time. we have a lot to choose from. just in the last five years, we have got g.m., takata, toyota. lawrence, let's start with you. where would you put it? law

volkswagen is in hot water. they need to discuss a response to the emissions rigging scandal. >> burkina faso's president says he's now back in power after he was taken hostage in a coup last week. >>> thousands of muslim devotes from around the world gather in saudi arabia for the hajj. >>> well, we begin in brussels where european union leaders are preparing for an emergency summit to tackle the refugee crisis. this is a day after eu ministers agreed on a deal to relocate 120,000 refugees despite fierce opposition from some members. roman romania, the czech republic, slovakia and hungary all voted against the mandatory quota system. laurence lee is looking ahead at what will be discussed at the meeting. >> reporter: as far as europe's reputation for handling a crisis goes, not to mention its aim as a liberal idea, the summer refugee crisis has threatened the foundations of the union. it's witnessed people running for their lives and have to endure drowning at sea. the police in macedonia accused of beating ref

volkswagen makes up the lion's share. the idea is simple, if confident carmakers, in german ismakers, in volkswagen undermined, if we see a slowdown as a result in volkswagen sales, then are all its -- ifs, that could drag down the euro in the future. yesterday you wouldn't see it, yesterday we had mario draghi eking -- speaking. expected mario draghi would be more dovish, there could be a second thing. -- you look atat volkswagen shares, they got killed on monday and tuesday, maybe some of it euro recovery yesterday was actually because people thought that the punishment to the euro had already been done. the fact that the euro has taken on this carry trade properties -- all of that weighing in. it is an interesting angle. we talked to an equity strategist recently who said it is not extreme to think that this will dent international investors appetite to pick up european stocks. ryan, thank you ray much. -- thank you very much. website about how the asian markets are playing out this morning. david is standing by in hon

that's my concern about volkswagen. more so than the fines they're going to have to pay and the compensation they're going to have to put out to owners on this. it's what does this do to management, what does this do to their overall brand image globally? >> what impact might it have on economic growth in germany in particular, if any at all? >> well, significant economic growth. because volkswagen is a major, major employer in germany. germany of course is the anchor of the european union. and keeping the euro afloat, essentially, and has done so the past several years as we've seen crisis after crisis on the euro. anything that softens the german economy can have a big-time trickle-down effect throughout western europe. >> they're going to stop selling the diesel motors apparently at least until they get a fix in place. that is not a huge part of their business in the united states, only 3% or 4% of vw's revenue comes from u.s. sales or sales here in the united states. but how damaging is this likely to be overseas? a

is it the end of the story for volkswagen? it's only the beginning of the earthquake shaking the world's largest car brand, german industry, and its reputation worldwide. vw's emissions admissions is the inside story. >>> welcome to inside story. i'm ray suarez. auto makers worldwide have been under pressure to find a few different holy grails. one, to design engines that power trucks and automobiles while using less energy. the other, to make vehicles that pollute less while doing it. volkswagen delivered stunning numbers by teaching the engine how to line. now the ceo has resigned in disgrace, stocks have been battered, and one of germany's most valuable brands is badly damaged. lisa stark takes a look at an auto scandal kicking into high gear. >>reporter: earlier this year, volkswagen reached the top of the mountain as the world's biggest car seller. now the giant of german auto manufacturing is in a free fall. >> this is a massive scandal that not only cheated consumers but also harmed the environment. >> vw installed soph

epa could volkswagen up to 18 billion euro s. bloomberg intelligence says penalties could amount to 20 billion if you include lawsuits from consumers, from shareholders as well. so far, the market value loss to volkswagen, as i said, in today's is 17 billion euros. it leads to this board meeting tomorrow and on friday when it is clear the future of the deep executive is very much on the line. but following that news that the company has set aside 6.5 billion euros as a provision to be recognized in the third quarter and will adjust its earnings targets, shares are down 8.5%. it is going from bad to worse. francine: it certainly is. let's go to hans nichols who is following the story. hans, the provision. is this a big number? hans: the bigger number is not so much the provisions because in some ways, volkswagen does not know what their legal liability is. until they figure out how many jurisdictions are investigating them. we heard a couple of minutes ago that france might be starting an investigation. overnight we heard that kor

volkswagen. still on track, janet yellen gives the dollar of boost as she confirms the fed still sees interest rates rising this year. japan's inflation gauge falls into negative territory, despite the governors unprecedented monetary spending. welcome to countdown, i am anna edwards. just about six a lot here in london. let us talk about janet yellen, the message she had to give to the market yesterday. i have here a dollar index, we have a bit of a bounce going on in terms of the reaction we are seeing. the big message from janet yellen last night, along with the hawkish voices heard in recent days, she was confirming the 2015 is when the majority think we will see a liftoff and interest rates. barring any big surprises, of course. that gave the dollar of those. it did not post expectations of a rate rise, if you look at what the fed fund futures are saying, they're talking about the 47.5% chance of an increase in december. it did move some of the yields, though. if you look at two-year treasur

can, and i -- with folks lik volkswagen. let's get more on vw with our chief economist for the euro area. david, give is a sense -- vw was a massive company. a huge amount of value wiped off its share price. the car industry is extremely important for the german economy, 4% of gdp. that takes into account the direct contribution of the car industry or the indirect contribution. it is also germany's largest export product. they make up about 20% of exports. anna: it's just the car industry. it's not even the rest of the made in germany brands. that could broaden things further. how well has the german economy that holding up so far, when you consider that the chinese slowdown has already been thrown at it? david: germany goes through a. of -- germany goes three period of strength, growth accelerated in the second quarter, and latest business surveys suggest we may have some acceleration for the third quarter. we will get an update on that this morning when it is released. guy: a lot of headwind for mario draghi. he will be on

this could hurt volkswagen with u.s. regulators. the other thing to keep in mind is that was the national highway traffic safety administrator. they have some powers are pretty limited. their fine-ability is smaller. peoplen air act is -- have gone to jail for that. there is very, much higher likelihood of nonmonetary jail time kind of punishments here. i wonder to myself, lawrence, whether this might for volkswagen become like the bp disaster in the gulf was for that company. that the numbers involved get so high so quickly and the liability seems so bottomless that the company has no choice but to shrink and sell off assets to prepare itself for the storm to come. volkswagen must be hoping that they can somehow limit the damage to the united states and not have this elite often becomes giant international issue. and become a off giant international issue. they have a 20 year record of floundering here. i speak as a loyal volkswagen guy. i could not afford bmw's. i drove gti's. few companies have such fiercely loyal buyers. but oth

a huge setback for volkswagen. people talking about this creating the same overhang on the stock like bp had when they got its troubles with the gulf spill. 6%, the share price rise is just at the beginning of the rehabilitation of volkswagen which could take years. thank you so much. ryan chilcote joining us from london as well as hans nichols. thank you for your reporting. headlines keep crossing. scarlet: matt miller will be joining us shortly but i wanted to recap headlines because the press conference has ended. what we have learned is that martin winterkorn is resigning as ceo of volkswagen. headlines indicate that they are moving ahead and plan to have some ceo proposals by friday. thathave also indicated they filed or they will file a criminal complaint on request of the supervisory board and an internal probe is in full swing. states inn, lower germany are looking to start an investigation into this manipulation and says criminal charges may be sought as well. they added the investigation could take a long

this is a huge story, the scandal at volkswagen. they had been hiding emissions from cars and this keeps getting bigger. right, boats now says 11 million cars worldwide were fitted with that software designed to cheat environmental tests. much bigger than a half a million cars that were recalled by the company in the united states over this issue. is settingsays it aside 6.5 billion euros -- volkswagen says it is setting aside 6.5 billion euros. the shares are tumbling further. they are down over 17% in frankfurt in trading. that $130.rice open 15 billion euros was knocked off of their value. many countries are launching their own investigations from the volkswagen cars. the head of american business said they made a big mistake. in my german words, we totally screwed up. >> after seeing billions wiped out of the value, the volkswagen head of american operations talked about this. >> our company was dishonest with the epa and the california resources board and all of you. we must fix those cars, the cars would prevent this from happ

are, the volkswagen rigging scandal. daniel: we have reaction from wall street in just a second. one of the world's biggest lawmakers -- which is what made the scandal even more shocking -- the company sells more than 10 million vehicles a year, but sales in the u.s. have been disappointing. it has just a single figure share of the u.s. conduct it. let's get back -- of the u.s. car market. let's get background on one of the car industry's biggest players. reporter: a look inside the world's largest car production plant, owned by volkswagen. even carries the name auto city. with 70,000 employees, it is a major economic power in the city and far beyond. vw is aiming to become the world's largest carmaker by 2018. worldwide, vw produces nearly 41,000 vehicles every day. the company employs 590,000 people. the group operates a total of 119 production plans, half of them located in europe. the other half in the americas, asia, and africa. it has been a troubling year for volkswagen. the carmaker is facing problems in its larg

volkswagen would be included. inderkorn indicated he will cooperate fully but the idea that this could be diesel-wide at least in germany is an interesting development and one that we should watch for the other auto companies, not just volkswagen. anna: we have heard from the french finance minister that the french carmaker should be tested. latesttching the developments on the migrant crisis. important meetings for the eu in terms of managing this migrant crisis taking place today. what is coming up? hans: we have the interior -- interior ministers meeting in brussels. some ways, you look at what is happening in the war of words between croatia, slovenia, hungry, and serbia. the onesntries not -- that are members of a eu, they will be a potential block to what comes out out of the eu in brussels on wednesday. 120,000 resettling plans. may find themselves as allies as they oppose their resettlement plans which all their language indicates they will do. i will look at how those countries interact or how it helps th

but the here and now, volkswagen. volkswagen is said to be facing a criminal investigation by the u.s. department of justice at home and abroad after cheating on emission test. yesterday volkswagen said the scandal is the company's top priority. and this, this matter is common sense, is the first priority for him personally and the entire management. let's be clear. withompany was dishonest, the epa and the california air resources board, and with all of you. in my german words, we have totally screwed up. jon: that is also the position that investors took sending the stock on its worst fall since 2008. hans nichols is in berlin. volkswagen's woes are snowballing. hans: here is what we know, there is a criminal investigation taking place in the state by the department of justice. there are also a couple whatessional committees. is interesting about congressional hearings is how quickly they arrive and how nimble companies have to be. here in germany, we have three separate developments. we have the environment ministr

volkswagen will cooperate with them. we heard from the premier lower saxony, he is on the board and has a 20% stake on that voting board. he is saying there will be a swift resolution to the criminal side of things, but is also indicating this is the first step. there are a lot of estimates out there. jpmorgan is saying it will cost them $40 billion, the fact is no one knows. no one knows the civil liability will be, or the criminal procedures. i think one question that is being asked, and we're hearing as the sun comes up, cars are coming in all morning. we got into a bit of a traffic jam because a shiftless starting at 10:00 p.m. this company lives, breathes, and plays football for volkswagen. asking,tion germany is with his just be localized on wolfsburg? or is it going to be industrywide? will this affect the entire auto industry? how was germany as a country going to process this, and what was it due to its reputation for efficiency, honesty, and proficiency. jonathan: the other question, ok, you announced a new ceo

er, the nextas mull chief executive of volkswagen, but what about the brands under the volkswagen umbrella? do they speak to each other? matt: absolutely they speak together. toureg ands porsche's cayenne are built in the same leipzig factory. they built a number of different product on the same platform. they have been trying to reduce the number of platforms they use. talk about a potential of 11 million vehicles, which is the number bandied about and includes not only vehicles in the united states -- matt: and audi diesel. huge production line and that got to know this is something they are installing. why would they be installing? the enginett: control unit is a fairly small piece of equipment and the software on it can even be changed. the thing they left out in the production of these diesels is the liquid receptacle. most diesel engines now have this fluid that they add -- pimm: right. matt: that removes the nitrous oxides. i want tore we go on mention the bbc is reporting, as we would expect, the u.k. government is launching an investigation. matt: add them to the list. the germans

is moremeanwhile, there clarity on how the volkswagen scandal is stretching into europe. after million cars were drawn into the scandalous week and now the german transport minister says 2.8 million diesel vehicles in that country have been implicated. a research company says around one million cars may have been impacted. tohas and lamented software cheat admissions tests in 11 million cars worldwide. let's change gears now get the american economy grew at a faster rate than first thought in the first quarter. consumer spending and investment came stronger than the previous estimate. consumer spending and investment are key for economic strength, and they helped to boost growth to 3.9% on in the annualized basis. the u.s. economy stalled in the first quarter. the commerce department had previously estimated growth of 3.7% between april and june. meanwhile, federal reserve chairman janet yellen has opened the door to an interest rate rise in the united states. she said it is likely before the end of the year. she was speaking on thursday just a week after the u.s. central

volkswagen shares plummet. sales of several popular models are suspended as the department of justice reportedly targets the automaker in a criminal investigation. >>> hack attack. why even the most valuable company in the world is not immune. all that and more tonight on "nightly business report" tonight for september 21st. >>> good evening, everyone. and welcome. volkswagen may face u.s. criminal charges over claims it cheated on emissions tests. more on that story in a moment. but we begin tonight with a decline in the biotech sector. the decline in that sector, its worst of the year, was fueled not by a failed drug trial but by presidential hopeful hillary clinton. the nasdaq biotech index fell about 4 1/2% after clinton said in a tweet that as president she'd crack down on what she sees as price gouging in the pharmaceutical industry. she promised more details tomorrow. now, those comments were in response to a report in the "new york times" of a 5,000% price increase, virtually overnight, in a 62-year-old

the only implicated company is volkswagen. >> the volkswagen issue is expanding into other countries including korea where korea's ministry of environmental affairs will be conducting emissions tests on three different models. this is after the issue came up in the u.s. and the test in korea will be happening in the middle of october on the gulf, the jetta and audi a-3 models. there's been speculations that the deception that happened in the emissions test in the u.s. also happened to cars that are imported into korea. an official for the ministry of environmental affairs is saying there's a high chance that the same issue could have happened in korea as well. though volkswagen korea is saying that emission standards in korea are the same as the ones in europe saying that they have nothing to do with the models that will be tested by the ministry of environmental affairs in korea so there's a difference between government officials and volkswagen korea at this point and also expecting this recall and after effects to mean a positive for hyundai motor group. the main reason that they'

some believe this is himm limito volkswagen. there's no discrepancy between what they have done in the real world. they saw discrepancies in models in opal, and models in mercedes benz and b.m.w. . >> i wonder if at volkswagen a lot of heads will role. is it bad enough that people will have to go to prison? >> i'll be surprised if that happens, i think you'll see senior executives, you know, lose their job. i would be surprised if we saw gaol time for this. i think - you look at other automakers and recalls that they have gone through, some of which involved deaths and accidents with no gaol time in those cases. this is a unique and different case. i wouldn't expect gaol time. >> david, good to have you with us. thank you. >> a crucial player in the u.s. war against i.s.i.l. is stepping down. on the anniversary of the u.s.-led coalition, a look at the effectiveness of the campaign. and an agreement on the refugee crisis, bringing to life the east-west . >> welcome back to al jazeera ameri america. i'm antonio mora. coming up in

scandal set volkswagen's chairs plummeting. rob reynolds reports. >> reporter: a trio of volkswagen executives made the announcement. ceo martin winterkorn is out. >> part of this is the offer of dr. winterkorn to step down. he had no knowledge of the manipulation of emissions. >> reporter: winterkorn issued a statement saying he took responsibility and volkswagen needs a fresh start. executives said they were conducting an internet investigation,. >> we have had the impression that criminal acts have played a role here. we make sure that the people concerned will be prosecuted. >> reporter: germans including those who live in volkswagen's hawrgz city voltsberg are concerned about their reputation for solid products. >> that is scheming, machinations, criminal dealing if you ask me, like a mafia. >> it just can't be true that such a global firm ruins their image like this. >> translator: i am disgusted because they should be role models. just imagine, this type of manipulation is hatching at the very top and such hues descent.

we're not even talking about a safety issue, really with the volkswagen scandal, and yet volkswagen has set aside an amount of money equivalent to a huge safety scandal with general motors. this is an incredible story. it's incredible that this company could have been so stupid, and look what it is doing to the company's performance and its bottom line. >> you have to wonder how much money they saved with these tests. the company has run afoul of the epa by allegedly installing software that essentially cheats emissions tests. the diesels are polluting up to 40 times more than the regulations permit. let me ask you this, are we looking at potential criminal charges at this point? >> you know, i don't know about that. we are certainly looking at tons of civil problems, litigation problems. it goes without saying there will be class action lawsuits against volkswagen. i think those have already begin actually. this is in the line of fraud, i think. so they claimed the car would do one thing, and then in reality on the road it did something else. so i don't know if you call that a criminal

volkswagen, mercedes-benz, and country'sent the largest industry sector. it accounts for 20% of german exports, including 800,000 people. some 300,000s employees across 29 plants across the country. the are the cornerstone of german auto industry. >> this must never happen again in volkswagen, and we want to make sure that we do everything so that confidence in the country is quickly restored. >> restoring consumer confidence and rebuilding a brand may be an uphill battle, one that is not in the company's best interest, but the country's as well. >> we are heading to the united states, where the chinese president, xi jinping, is becoming one of the biggest names in the technology world. >> yes, he is. including facebook, amazon, and apple. that is an event he attended on wednesday night. there were new partnerships announced in china which will help push the sale of windows 10 there. many technology cubbies have a difficult time operating in china. there.k is locked despite the restrictions, on internet access in china, she is saying he wanted a more open

reporter: this is the testing facility where volkswagen was found out. and cutting emissions during the test making the vehicle appear cleaner 40 times. the scientists could hardly believe it. >> this is a serious violation. they are monitored for decades. and typically these are engineering failures. when something is designed deliberately to mislead the testing process and undermine the emission gains we have achieved, that is a very serious violation. reporter: the results of the tests could be devastating to volkswagen's reputation. the road ahead to the company looks to be filled with fines, lawsuits and losses. so far 482,000 diesel cars have been recalled in the united states. under u.s. legislation, volkswagen could be fined up to $11.6 ounds per car, billion pounds. volkswagen share price slumped by nearly a fifth despite the chief executive saying he was deeply sorry for breaking the trust of customers and the public. recovery from this scandal may require for contrition. >> it looks like a cover-up like things that happened in the banking indu

story.e volkswagen we will

some people claim that volkswagen committed fraud. others are saying that the resale value of their vehicles actually have been deflated quite a bit. some of those lawsuits are legitimate, others not, but lawyers all over the country are jumping on this case. >> thank you very much. that is all your business news for the moment. the pope? >> he is a 78-year-old man. it was a tiring day for the pope. pope francis was showing the signs of flagging as he began his tour. the motorcade passed through the streets of washington dc. he also received a red-carpet welcome from president obama. >> is not often that a president receives a guest with some of pomp, but president obama made an exception, a clear sign of the warmth. the leader of the world's catholics arrived in a typically modest vehicle, but at this reception, he was greeted by a red-coded military band. -- red-coated military band. ♪ >> the pope looked tired after his trip to the americas, but was consistent with a picture painted by obama, praising francis as a model of utility

volkswagen's top boss says sorry. customers were tricked into thinking cars were more environmentally friendly. his job is on the line as vw's supervisory boards meet. and settling hundreds of thousands of refugees around the block. thousands are pouring in every day and many say it is not enough. and in burkina faso, the leader is not ready to surrender just yet despite an ultimatum from the army running out. i'm sarah kelly. welcome to the program. it has been a day of accelerating crisis for car giant volkswagen. it is facing a criminal investigation by the u.s. department of justice, a probe and a catastrophic loss of consumer confidence. chief executive martin winterkorn has apologized, but is it enough for him to keep his job? >> the omission scandal has shaken volkswagen to the core. the german carmaker is being forced to retest vehicles in asia, the u.s., and europe. it is a worst-case scenario for the company's chief executive martin winterkorn that apologized on a video on the company's website on tuesday. >

volkswagen hass not gone electric fast enough. they don't have an answer to the hybrids, the prius is of the world.- the prius of the mr. venter corn has a contract extension. he is the helm of volkswagen europe through 2018. 324,000 up the math, vehicles. of $18d she to a total billion. that gets you to a total of $18 billion. the epa says they referred the case to the justice department. a lot of commentary in germany on this. it is been focused on if volkswagen has been doing this in the states, had they been doing similar things within the european union? francine? francine: hans nichols, thank you very much. trust --w when back win back trust? andrew, this seems crazy that this was bound to happen. they now have to regain the trust of the u.s. consumer. ?ow do you read into this is this going to set them back years? andrew: it is a failure of governance. it is something we will be engaging in with the management on. to doey felt the need something like this. of more concern is what is going to happen in europe? because in eur

betty: so he was responding a bit more to the volkswagen situation but is the situation at volkswagen, a problem that will hurt other automakers? matt: i am not an engineer but a question i have is how other carmakers who have a lot of vehicles in the u.s., how do they beat testing? carlos points out they do not have diesel vehicles here. german carmakers, all of the other german carmakers do have a lot of these vehicles here. it could be that they use certain fluid to suck up the volkswagen does not use. there could be other engineering answers i am not privy to. but it seems like if volkswagen clean,make clean diesel how are other carmakers making normal diesel clean? i have a motorcycle collection problem. i happen to know motorcycle brands, which i will not name right now, from the 70's, 80's 90's, and today, i owned motorcycles build this year that have certain devices on them to fool certain regulators into thinking their bikes are wider, the exhaust pipes are quieter than they are. companies -- other i have a motorcycle that has a butterfly valve in the exhaust manifold. that s

volkswagen ceo has been asked to step down after charges of emission cheating tests. but martin winterkorn refuses to step down. >>> many refugees are fleeing war and oppression and poverty in western africa. jacky rowland is in bruce else. >> brussels. >> local volunteers go to the rescue of a dinghy. they see a greater emergency. a man is drowning and they rescue him. it is symbolic of a huge challenge as they struggle to cope with the refugee crisis. >> meanwhile, in brussels interior ministers were meeting not for the first time to try to agree on a plan to shell ou out 120,000 refugees across the european union. >> the commission made the proposal. we know that some member states were not in favor of the proposal. but those member states say, said, we'll have a vote. you know our position. but we'll respect the outcome of the vote because that is what we do. and so these member states all of them respect the outcome of the vote. >> hungary is one of the country's most hostile quota systems. it is installing fences to keep refugees out. slovakia, romania and the c

and what if anything has volkswagen said on the record about this? >> volkswagen is saying that it's cooperating with the epa in this investigation. and ultimately if there is a recall it has to be issued by the automaker. so volkswagen would announce that recall. the epa fine is $37,500 per vehicle. that's the potential maximum fine. you add that up or multiply that by 482,000, you get a potential fine of 18 billion. but let's be clear here, tyler, most likely you're looking at a fine that is going to be far, far lower than that. nobody is suggesting that volkswagen's going to pay a fine of that much. we're looking at vehicles, by the way, between 2009 and 2015, your most popular models manufactured by volkswagen that are sold here in the u.s., the golf, the passat, all diesel models, the beetle, audi a-3 is another one of the models involved. >> so as we look at those models that are affected, you mentioned there's no recall yet. can people keep driving those cars? >> they can. they can continue driving them and eventually there will be some type o

volkswagen is gm, ford and fiat. it's their company and to go after this company and go after them criminally, which is not being ruled out, justice department means criminally, well, i got to tell you, should you be in that stuff? >> and a lot more fall out on this cheating scandal which is being called diesel gate. they're now setting aside 7.3 billion dollars and the issue is related to 11 million vehicles world wide. here's what they had to say yesterday at an event launching the new pasat. >> our company was dishonest with the epa and with all of you and in my german words, we've totally screwed up. >>ia mention the d.o.j., there's an emergency board meeting tomorrow. and already german companies saying winter corn is out. people are talking do they survive? does this put germany in recessi recession. >> bp is a great an log. they thought they could contain it and they couldn't. goo gm got away without any indictments, volkswagen -- >> the epa has a lot more power to pursue litigation here. >> as we know from bp

how did volkswagen take such is a wrong turn? 2013 they ran test on diesel car emissions. they expected diesel cars sold in the u. s. to be exceptionally clean due to tough u.s. standards but they were surprised to find quite the opposite and reported their findings to the environmental protection agency. the epa finally challenged the car maker and issued a statement calling on volkswagen to issue a recall and warned it faces penalties of up to $18 billion. >> so that really begs the question. what is next? reports suggest the u.s. department of justice will launch a criminal probe. internationally, south korea has opened it's own investigation which it says could expand to all german diesel cars if foul play is discovered. in france, the finance minister called for a european wide probe saying there was no reason to believe french car makers had acted like volkswagen. >> the supervisory board of volkswagen will convene to recall to discuss the response of the scandal. seeking ahead of that meeting the board member said there will be personnel consequences but warned agai

that has suffered heavily following the volkswagen scandal. let's have a quick look at asian markets. the story there not so positive. pmi data out of china was softer than expected and that's effected the likes of shanghai and hong kong markets. they closed down over 2%. australia also down over 2%. susan. >> okay. yeah, let's take a look at why asian markets are feeling the pain today. this is after manufacturing pmi figures for china dropping to a scary 6.5 year low so the september figure dropped to a read of 47 that missed estimates also declining from the final august read of 47.3. export orders shrinking since mid 2014 while new orders hit a four year low and when it comes to china data as long as things don't get worse the markets like it but in this case the number keeps getting uglier and uglier. >> let's take a look at that headline number. 47. that was the preliminary estimate so this came in below expectations. the market was looking for 47.5 and i would say it's not entirely expected. the market was very disappointed but we know

disaster for volkswagen, but the chief executive has resigned relatively quickly. any way of rescuing the brand, do you think? >> i think that's a very good question. everybody, when there is trouble, wants a throat to choke, as it were, and winterkorn has taken it and resigned because of it. people's relationships with brands is not a rationale thing. it is emotional. that is based on trust, and that has been broken. that will damage its reputation not just with stake holders, investors, but customers might start to consider other brands whereas they never would have before. >> what do you think would make someone buy that particular brand of car over others, for example? >> well, there is function. what we look for in brands is what we look for in friends. that's the decisions we'll make when we look at choices. yes, finances is important, but what car do you identify yourself with? and vw has a very distinct design and it's very unique in that way in its position in the market. in fact, i'm sure many people would not believe that it's the biggest carmaker in the