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Volkswagen to recall around 8.5 million vehicles in Europe

Volkswagen said it would recall around 8.5 million diesel-engine cars in the European Union (EU) after Germany requested servicing of the vehicles following a scandal over rigged emissions tests.

VW said on Thursday that it would need to be determined outside the 28-nation EU which classes of engine EA 189 were affected. The latest engine generation EA 288 is not affected, it said.

Germany's KBA automotive watchdog, acting as the lead regulator for national agencies across the EU, ordered Volkswagen on Thursday to recall and refit 2.4 million diesel vehicles in its home market next year.

Read MoreWatchdog orders VW to recall 2.4M vehicles

In a statement on its website, Volkswagen said that it welcomed the quick decision from the KBA.

Some analysts have said the scandal could cost Volkswagen as much as 35 billion euros ($40 billion) to cover vehicle refits, regulatory fines and lawsuits.

—CNBC's Everett Rosenfeld contributed to this report.