– This is the script of CNBC's news report for China's CCTV on September 22, Tuesday.
Welcome to CNBC Business Daily, I'm Qian Chen.
The top story we are tracking today is Emission scandal.
The German automaker is accused of breaking the U.S. clean air act.
The VW officials have come out and said "We totally screwed up".
Officials at the Environmental Protection Agency say VW installed a "defeat device" software in thr diesel cars sold in the U.S. since 2008.
Because of which VW now needs to recall more than 480 thousand vehicles...maybe more...
The costs...18 billion dollars.
But that's just an estimate.
This could get much, much more expensive for VW.
[John Humphrey J.D. Power&Assoc,SVP of Global Automotive Operations] "110711 Yes this is an exaggeration, but theres no fatality, and that's an important point to make. It does not give them any free xx for sure, but there's no fatality in this issue as it was before, now with that being said, now it's the issue of credibility. 110728"
VW rose to number one position for the first half of this year.
In 2014 the german auto maker sold more than 10 million vehicles...more than 30% in China.
Our team in Beijing says this story isn't getting a lot of play in Chinese media.
But the Xinhua news agency has pointed out that the VW diesel cars in question are NOT for sale in China.
In other words, China is not affected.
But neighboring South Korea...is affected.
South Korea's environment ministry said it would investigate the emissions compliance of Volkswagen's diesel cars, as the fallout for the German carmaker after its admission that it rigged US emissions tests spread to Asia.
[Karl Brauer, Kelley Blue Book Senior director] "074812 I don't think anyone even consider 72 hours ago, the idea that any automaker would be programming their cars to change how their engine runs, when during the emission test, and during driven regularly. But noe surprisingly, government regulators and ETA people are prepare to look at this issue much more closely across more manufacturers. It would be interesting to see if it turns out to be more manufacturers who have done the same thing. 074841"
Volkswagen shares plunged nearly 20% in Europe on Monday, wiping out 14 bn euros in market cap in just one session..
The scandal comes as VW fights to topple Toyota and become the top-selling automaker in the world, something analysts said could happen in 2015.
Through the first half of the year, VW had sold 5.04 million vehicles worldwide compared to 5.02 million by Toyota.
While the U.S. made up just a small percentage of those sales-roughly 3.5 percent-Volkswagen cannot afford a pullback in any market if it's going to catch Toyota.
CNBC's Qian Chen, reporting from Singapore.