VW says recall to start in January, be completed by end-2016

Volkswagen (VW) would launch a recall for cars affected by its diesel emissions software in January and complete the fix by the end of 2016, the chief executive of the automobile major has said.

"If all goes according to plan, we can start the recall in January. All the cars should be fixed by the end of 2016," Chief Executive Matthias Mueller said on Wednesday.

For the US market, a company spokeswoman said, the remedy will first have to be agreed upon with Environmental Protection Agency (EPA), but she offered no timing for that, China daily reported.

Mueller believed only a few employees were involved in the diesel emissions rigging that has hammered the company's stock and done severe damage to its reputation, refuting the notion that his detail-oriented predecessor Martin Winterkorn must have known about it.

He said VW would have to become smaller and less centralised, adding that every model and brand would be scrutinised for its contribution to the company and singling out Bugatti.

An "evolution" rather than a "revolution" was needed to get VW back on track, predicting that the company could "shine again" in two to three years.

"This crisis gives us an opportunity to overhaul VW's structures," Mueller said. "We want to make the company slimmer, more decentralised and give the brands more responsibility.

"Based on our understanding of the law, we informed in time," he said.