dr. winterkorn to step down. we want to stress that dr. winterkorn had no knowledge of the manipulation of emissions standards. >>> how software designed to deceive emissions testing results found its way into 11 million vehicles. >> we had the impression that criminal acts have played a role here. we will bring to light all the proceedings within the company and make sure that the people concerned will be prosecuted. if. >> they all knew about it, that is the sad thing in the end. that is scheming machinations. that is criminal dealing if you ask me. it is like a mafia. >> it just can't be true that such a global firm ruins their image like this. >> translator: i am dusted did because they should be role models. >> in chicago an attorney is taking legal action on behalf of volkswagen owners. >> the allegation will be that the consumer has been harmed for the full purchase price plus the consequently damagequengsconvec. >> falling sharply and potentially billions of dollars worth of fines looming over it. but the biggest cost to the company

dr. winterkorn last night. giant is hoping to replace them by tomorrow and begin the job of repairing reciprocation following the emissions cheating scandal. hans nichols is live on location. hans, can we quantify, get our arms around the scale of the problem that the person that takes over will have to deal with? 40 billion is the number from jpmorgan. know all the jurisdictions that for swaggy will be investigated in, and will they include a criminal component. there are three discussions going on. one, the confession. two, how far up the chain of command is their culpability? then knowledge that volkswagen was actively, knowingly trying to defeat epa testers so they could game the emissions game. three, how big of a problem is this in the area? is this a german industry problem? we heard from angela merkel repeat her commitment to lowering emissions. it is better on the carbon footprint. it is not as great and other particulate matter. germany went with diesel. you look at the saturation, the penetration som

dr. winterkorn to step down. we want to stress the point that dr. winterkorn had no knowledge of the situation. >> he stepped down saying that volkswagen needed a fresh start. they'll look into the investigation to see how software found its way into 11 million vehicles. >> we have the impression that criminal acts have played a role here. we will bring to light all the proceedings within the company and make sure that the people concerned will be prosecuted. >> germans including those who live in volkswagen's headquarters city wolfsburg. >> that is scheming machinations. that's criminal dealing. that's like a mafia. >> it just can't be true that sufficiently a global firm does this. >> in the u.s. a chicago attorney is taking legal action on what hav behalf of volkswagen owners. >> the consumer has been harmed for the full purchase price plus damage in associated with that. it could be the entire purchase price, the impact is massive. >> german prosecutors plan a criminal evaluation, and in the u.s. also vw could face charges of wire fraud and lying

dr. winterkorn. what we had from dr. winterkorn yesterday is a clear indication he plans to fight. francine: this weekend, intoberg best will go detail about vw. be sure to tune in on saturday and sunday at 12:00, 4:00 p.m. and 9:30 p.m. on bloomberg tv and online. e.u. interior minister's having agreed to shelter 120,000 refugees ahead of a leader summit. despite objections from four eastern european nations. jones, what has been the reaction to this european agreement? jones: there are couple of things. first of all, as soon as the ministers announces agreement last night they admitted it is modest and it is not enough to actually address the full refugee situation. this agreement is for 120,000 refugees to be distributed across the e.u. but the projection is that one million refugees are going to be coming into the e.u this you and. -- this year and in each year for a couple years. this is to solve part of the problem. the other thing is that this agreement was put through over the objections of these four eastern member states. the e.u. usually works on consensus. and the fact

dr. winterkorn didn't know that he was not culpable in any way. here is what dr. winterkorn said.ept forpect -- responsibility for the irregular terry's andrregular supervisory board to agree on determining my function as ceo of the volkswagen group. that was 24 hours after he said he wanted a technical fix. this was an injury -- an engineer who apparently thought he could find a solution. he obviously had a political and public relations problem. now they are trying to figure out who will replace him. candidates are herbertof porsche and deese. $40 billion could be the total price tag for volkswagen. that they might downgrade credit of wolfsburg --volkswagen. they noted the damage to the brand is significant. we have seen workers come in all morning, it looks like a shift is still -- just starting. has a denies, volkswagen difficult road ahead. anna: can we begin to quantify just how big a problem this is for volkswagen as it tries to turn the corner? chancellor -- hans: in some ways we don't know because we don't know all of the legal costs. we don't know if they will be facing

dr. winterkorn is, in fact, stepping down. our firl lebeau has more on that. phil. >> thank you very much, carl. we're awaiting a press conference at the headquarters of folks in germany where martin winterkorn has resigned saying "i am clearing the way for a fresh start with my resignation. i am shocked by events of the past few days. above all, i am stunned that the misconduct on such -- at the misconduct on such a scale was possible in the volkswagen group." unclear who the new vw ceo will be, but, again, martin winterkorn out as ceo of volkswagen. we are awaiting a press conference. as can you probably see. we will no doubt be monitoring it, and whatever details we get, we'll pass along as soon as we have them. >> thank you very much, phil. >> starkly worded. phil said i'm shocked by the events of the past few days. i'm stunned that misconduct on such a scale was possible in the volkswagen group. i am convinced that the volkswagen group and its team will overcome this grave crisis. leaving very little to the imagination here after what is turning out to be

dr. winterkorn to step down. he had no knowledge of the manipulation of emissions. >> reporter: winterkorn issued a statement saying he took responsibility and volkswagen needs a fresh start. executives said they were conducting an internet investigation,. >> we have had the impression that criminal acts have played a role here. we make sure that the people concerned will be prosecuted. >> reporter: germans including those who live in volkswagen's hawrgz city voltsberg are concerned about their reputation for solid products. >> that is scheming, machinations, criminal dealing if you ask me, like a mafia. >> it just can't be true that such a global firm ruins their image like this. >> translator: i am disgusted because they should be role models. just imagine, this type of manipulation is hatching at the very top and such hues descent. >> an attorney is taking action on behalf of volkswagen owners. >> the assumption is the owner would be harmed to the entire purchase price. the impact here is just massive. >> germa

dr. winterkorn had no to knowledge. >> he said that volkswagen needs a fresh start.hey said they weren' they were conducting an internal investigation to see how the software made its way into 11 million vehicles. >> we will bring to light all the proceedings within the company and make sure that the people concerned will be prosecuted. >> germans including those who live in volkswagen's head quarter city are disturbed by the scandal that has soiled their country's reputation for quality products. >> no one new about it. that is scheming machinations. that is criminal dealing. it is like a mafia. >> it just can't be true. that such a global firm ruins their image like this. >> i am disgusted because they should be role models. just imagine this type of manipulation is happening at the very top. and at such huge expense. >> in the u.s. an chicago attorney is taking legal action on behalf of volkswagen owners. >> they have been harmed for the full purchase price and the damages associated with that whether it's in value, the were price. the impact is just massive. >> g

winterkorn has worked at volkswagen for over three decades. he is part of the machinery that led to this scandal. the obvious question, can he keep his job? drhat we know is that winterkorn wants to keep his job. thiswe did no heading into was that when i spoke to him last week, he was pretty hisident about having contract renewed on friday. listen to how -- contemplate for a moment how much things have changed. my contract has not been extended, the executive committee has been proposed to be extended by the supervisory board. chairman, is to the have been working to go closely and he was focusing on business matters. it is an excellent corporation. this is a good, sign for the group. hans: he may not have an opportunity to run the company going forward. that he has lost the confidence of the board. let me just want you through that, tonight is a meeting winterkorn will have they five person board. on friday, we expect the full 20 and theyard to meet usually take the recommendation of the executive board. in some ways, tonight's meeting is key. it looks like there is a labor leader, and the premier of lower saxony. we will be seeing what th

dr. winterkorn has a lot of explaining to do. facedil winterkorn questions about his leadership.he board rally quickly, it did not happen this time. guy: thank you. anna: let's get more on this developing story. we are joined by greg archer. it is great to have you on the program. thoughts on how much the questions being raised by volkswagen, what does this mean for europe? greg: i think they are the tip of the iceberg here in europe. we have seen a similar, big gap between it -- official test results which happen in a laboratory and the ways that cars actually perform on the road in terms of nitrogen oxide emissions. a study last week showed that one in 10 new european diesel cars were meeting the new regulations. every vehicle should have met it on the first of september. some vehicles were producing substantially more pollution. we are talking about 10 or 20 times. the question is therefore, how are these vehicles passing laboratory tests whethey perform so poorly on the road? surprised if we do not see over the next few days and months, more ofufacturers having me kinds devic

dr. winterkorn had no knowledge of the eapplications issue. >> excused said they were pursuing an internal investigation into how software designed to deceive emissions testing results found its way into 11 million vehicles. >> translator: we have the impression that criminal acts have played a role here. we will bring to light all the proceedings within the company and make sure that the people concerned will be prosecuted. >> reporter: germans including those who live in volkswagen's headquarters city voltzberg are concerned about the scandal that has soiled their company's reputation. >> they all knew with it. that is scheming machination, that is criminal dealing if you ask me like a mafia. >> it just can't be true that such a global firm ruins their image like this. >> translator: i am disgusted because they should be rule models. just imagine this type of manipulation is happening at the very top and such huge extent. >> reporter: in the u.s. a chicago attorney is taking legal action on behalf of volkswagen owners. >> the allegation will be that the consumer has been harmed for the f

dr. winterkorn. a plan for japan. in one hours, prime minister shinzo they would deliver a speech.der chair ana botin talks banks regulation, currency and global growt in an exclusive bloomberg interview. welcome to "the pulse" live from

dr. winterkorn is a buy the books, detail guy. he would want to have the most control is not surprising. this is a guy that fixes gearboxes if a car is going wrong. he is a german engineer, a detail oriented man. the issue is how could he not have known that books like an -- wagon wase an -- volks cheating the environmental protection agency. the number of regulators that he is going to deal with its piling up. it looks like the transportation ministry will be holding an investigation and there will be one in korea. we heard about france testing all diesel vehicles. the list of regulators he will have to satisfy will grow. by their own admission and profit warning, they said 11 million vehicles have this technology. this is a company that produces about 10 million vehicles per year. scarlet: the numbers are certainly eye-opening. thank you so much for recapping those headlines and we will monitor the comments of the ceo martin winterkorn. he is asking for trust and that he is working intensively on a technical solution. we will ch

dr. winterkorn had no knowledge about manipulation of emissions. >> executives said they were pursuing an internal investigation how software designed to deceive testing results found its way into 11 million vehicles. >> translator: we have the impression that criminal acts have played a role here. we will bring to light all the proceedings within the company and make sure the people concerned will be prosecuted. >> reporter: germans including those who live in volkswagen's headquarters city voltsburg are concerned that this investigation has soiled the company's reputation for production. >> that is criminal dealing if you ask me. it is like a mafia. >> translator: it just can't be true that such a global firm ruins their image like this. >> translator: i am disgusted because there should be role models this manipulation is happening at the top and with such huge assent. >> a chicago legal firm is taking action on behalf of consumers. >> the full purchase price plus the consequentl convention dama. consequential damages. the implication are massingive. >> vvw could face charges of wie tr

dr. winterkorn told us in march about his prospects or his belief in growing its business in the u.s. >>lator: yes. we did procrastinate and wait too long. of koucourse near small end we to close a factory so we were reticent, now we're going into the offensive in the states. >> that was back in march going on the offensive. they are clearly on the defensive now since they have to suspend sales of certain models in the u.s. they're already down in terms of sales this year, down 2.8%. look at shares of volkswagen, hard to tell, but on the farp right su see shares down more than 20% today. the bottom line is this, it remains to be seen how much volkswagen will be fined by the epa. potentially it could be up to $18 billion. realistically it will be far lower. but this is not something where they'll write a check and it will just go away. a lot of volkswagen enthusiasts and diesel enthusiasts are saying why i did buy this consider or consider buying this car? >> phil, if you believe what epa is alleging here, and why not since they apologized for it, the cynicism of what they did is extraord

dr. winterkorn within the next half hour. and 11 million engines world wide impacted in some fashion. the software but that was the announcement from volkswagen. they say they will take a 2.27 billion dollar charge to start fixing these engines. and we had a chance to hear from the head of volkswagen of america and he did not sugar coat it. >> our company was dishonest. with the epa and the california resources board and with all of you and in my german words, we have totally screwed up. >> how much has to pay remains to be seen. again, we'll hear from the ceo of overall volkswagen out of germany. >> if they misled regulators around the world and they thing they're going to get off with a charge of 8 or 9 billion dollars -- >> simon, that charge is strictly to deal with the software of these engines, any recalls that will take place, etc. i don't think that has anything to do with potential fines, etc. >> and they've lost in excessive of 30 billion dollars in market cap. so, let's see what winterkorn says at the top of the hour. and the dow now down 264. >> 264 points and this is now

dr. martin winterkorn gave nothing away in terms that they were facing something that could cost $18 billion. that is if the epa assesses a $3700 per vehicle. that would be big even if we were talking about a german bank. jon: this is big. the stock is lower by 16.5%. the biggest one-day move lower since november of 2008. officials still see a 2015 liftoff. more on the latest comments from within the federal reserve after the break. . great time for a shiny floor wax, no? not if you just put the finishing touches on your latest masterpiece. timing's important. comcast business knows that. that's why you can schedule an installation at a time that works for you. even late at night, or on the weekend, if that's what you need. because you have enough to worry about. i did not see that coming. don't deal with disruptions. get better internet installed on your schedule. comcast business. built for business. this is a great place to work. not because they have yoga meetings and a juice bar. because they're getting comcast business internet. comcast business offers convenient installation appointme

dr. winterkorn had to go. ofk: you were here a couple weeks ago, and we were talking about whether he would step down, and now that he is gone, 2020 hindsight being what it is, can you give our audience an example of what happened here? we're talking about 11 million vehicles, and the question is how can this many vehicles be involved and the ceo of the company not know what is going on? jamie: especially this ceo, because he knows pretty much what is going on. on monday, we were talking about 500,000 cars, and then we sell regulators in europe saying, "hey, maybe we should look at our same cars and see if we have said,lem," and volkswagen "hey, don't look at it. we will tell you. while and we are also looking at one engine and a larger engine family. basically volkswagen has said, this one11 million in engine line have this problem, but they also have small diesel engines that could have this problem, so are they kind of saying this is one specific issue, or is there something longer going on here was to mark

winterkorn was out. >> part of this new beginning is the offer from dr. martin winterkorn would step down. we want to strep that he had no knowledge of the emissions. >> he said that he took responsibility and that volkswagen needs a fresh start. executives said that they're pursuing an investigation into how software designed to dee receive emissions testing results found its way into 11 million vehicles. >> we have the impression that criminal acts played a role here. we'll make sure that the people concerned will be prosecuted. >> germans, including those who live in the volkswagen headquarters of volksburg. >> the scheming machinations. that is criminal dealings if you ask me. it's like a mafia. >> it just can't be true that such a global firm ruins its image like this. >> they should an role model. imagine, this is happening at the very top. >> in the u.s. a chicago attorney is taking legal action. >> the consumer has been harmed for the full purchase price plus the consequential damages associated with that whether it's di munition in value, the purchase price it's just massive. >> g

dr. winterkorn, and the rest of the auto industry is a little bit nervous because one in 7 jobs in germanyo industry. it has invested so much in diesel. it is the overall sort of consequence in schedule is diesel is not only killed in the u.s. but put on the back burner in europe. there will be a lot of lost investment because companies here have all invested heavily into diesel. they have been subsidized heavily as well. quick question for everyone here on set -- of all the times we have looked at the stickers when you look at the cars on the block and you see miles per gallon, who here has ever gotten the miles per gallon that has been advertised for both city and highway? because i have never been able to. [laughter] robert: it depends on the driver. [laughter] michael: how realistic are those numbers to begin with? there has been some findings relative to also the state epa or miles per gallon alsod. again, it is a very standard test, rigorous under certain conditions that are governed by the government relative to how you comply. and again, in everyday driving, different factors -- ro

dr. martin winterkorn was riding high. he expected his contract to be extended on friday. now there's a report of their version of a auto magazine, a mass publication here, they were did not meet's x3 the particulate standards they claimed to have met. they were three times what the legal limit was. we saw their stock drop 5% immediately after that was reported. not sure where it is at right now. it gives you a sense at how sensitive the entire auto industry, let alone share prices , are two reports that these vehicles may be spewing out more noxious gases than people thought they were. there's another side of the story. in germany, people say, people have always fudged on how they were going to meet their omission standards. you would maybe have a little less weight in the car, take out a few kilograms. if everything is going to be proofed on the road as the transportation-- minister is asking, there will likely be more vehicles that do not pass the omission standards -- admission standards they are claiming. we hear that fines could be up to $18 billion. of a lot of talk

dr. martin winterkorn stepping down in the wake of a scandal that so far has cost the to lose $7.3 billione far too little. ♪ ♪ >> welcome to bloomberg marketing. martin winterkorn steps down. we will take a look at what is next for the automaker. president meets with business leaders. newlet: an exclusive bloomberg poll shows that vice president joe biden would have significant support if he decided to run for the white house. we will have the full results. ♪ scarlet: good afternoon. betty: let's begin with how the markets are trading at this moment at midday. we are seeing the slide, down about 95 points. we continued keeping all right on automakers, particularly volkswagen shares. trading has closed in germany but you can see the news that we got, including the department of martin -- departure of martin winterkorn. scarlet: a quick check on currencies. the euro gaining strength versus the dollar. this is after mario draghi said is too soon to say whether risk to the economy means that the ecb should increase stimulus. they need more time and data. the fed needs more time and data to se