What a couple of weeks it has been for Volkswagen.
Since last week's news broke that Volkswagen rigged software to cheat on its United States' emissions tests, affecting 11 million vehicles, the automaker has had its CEO resign and be replaced, and three more countries implicate it with the same manipulation charge.
Although Volkswagen has vowed to refit up to 11 million vehicles affected by the emissions scandal, regulators in the U.S. and Germany are putting pressure on the carmaker to reveal the details for such a large undertaking within one week.
How bad is it? Volkswagen has reportedly put aside $6.5 billion to cover the cost for the recall, but Credit Suisse estimated to CNN Money that when it's all said and done that VW could be rocked for $87 billion in a worst case scenario. That's more than 60 percent the cost of BP's disastrous 2010 oil spill in the Gulf of Mexico.
"The market does not appear to be discounting negative knock-on effects," a Credit Suisse analyst wrote in a report sent to the bank's clients about the VW scandal. "The outcome for recall costs and fines is unclear and largely depends on the engine performance post repair."
As Credit Suisse alluded to, regulatory fines from countries, as well as drivers' lawsuits, could send costs to sky-rocketing levels for the automaker.
When CNN Money reached Volkswagen about the $87 billion number, though, the automaker didn't read too much into that calculation at all.
"The numbers are pure speculation. The calculations are nonsense," a Volkswagen spokesperson said in a statement.
If the number pans out to be true, though, it'd mark seven times the amount of VW's net profit for 2014, not to mention severely buckle the automaker financially.
Then again, its reputation continues to take huge hits since news of the initial scandal broke last week. A day after the September 22 news about Volkswagen rigging the software to cheat on U.S. emissions test surfaced, CEO Martin Winterkorn announced that he was resigning.
That Thursday (September 24), Germany's transport minister also announced that the carmaker had manipulated software for 2.8 vehicles in Germany to also cheat on emissions tests. VW ended that chaotic week by officially announcing Porsche chief Matthias Mueller as its new CEO in hopes he could drive it out of its mess. Though, he'd find out fast how much further turmoil Volkswagen has got itself into.
"We are facing a long trudge and a lot of hard work," Mueller told top Volkswagen execs during a closed-door meeting this past Monday, according to Reuters. "We will only be able to make progress in steps and there will be setbacks."
Setbacks by the way of further revelations about how knee-deep the brand is in with trouble over this scandal. Earlier this week, it was reported that Audi, VW's luxury brand, had 2.1 million of its cars manipulated under the same emissions scandal. The United Kingdom reported that it had 1.2 million VW vehicles that had deceptive software as well, with France and Italy opening investigations as well.
Though Volkswagen announced a plan to refit up to 11 million affected vehicles, costing it an estimated $6.5 billion, it was given an October 7 deadline by Germany's KBA watchdog to present the details for the complicated recall process.
Bradley Hoffman, chairman of the American International Automobile Dealers, told Reuters it will take time, but that VW will right their wrongs.
"I want them to get off their you know whats and handle this thing swiftly and correctly. But I know they will," he told Reuters. "This is urgent for them because it's a public relations nightmare. They're still in assessment mode."
Still, customers in several countries are left yearning for answers.
"There's been no news whatsoever from Volkswagen—from the dealer, any letter, any phone call, nothing whatsoever," Giacomo Corrado, who lives outside San Francisco and leases a diesel Golf, told Reuters.
And the biggest crisis in Volkswagen's 78-year history continues.
How long will it take at this point for the carmaker to begin improving its reputation within the auto industry and more importantly, for customers?
