Volkswagen said Tuesday some 11 million diesel vehicles worldwide could have the suspect software that had triggered a widening emissions scandal.
The German automaker said it will make a provision of 6.5 billion euros ($7.3 billion) in the third quarter following the revelations last week that it had misled authorities over the emissions of its diesel cars.
The company added that this provision was subject to revaluation and that it was working with the relevant authorities to clarify the irregularities in the software that recorded emissions in the carmaker’s diesel engines.
Up to 11 million vehicles could be affected in the scandal, the German auto giant added.
Shares in Volkswagen dropped 20 percent in European trading on the news of the profit warning.
The scandal surrounding Volkswagen’s emissions data has raised fears that damage may not be limited to the automaker. There could be another casualty: Germany’s hard-won reputation for reliability, efficiency and trustworthiness is at stake.