models affected include volkswagen passat, beetle and a3. the u.s. environmental protection agency cited health damages 10 to 40 times the legal limit. this went undetected for years because vehicle software was programmed to ensure cars emitted lower emissions when tested. >> the epa is accusing volkswagen of putting a cheat code into their engine management system for these engines that would enable them to pass the emissions test in states like california and others. reporter: the company could face a fine of up to $18 billion, the highest ever levied against an automaker. it is unclear whether the cheating software was used in europe and china but the company could be in for a rough ride. stephen: volkswagen shares having a great day -- a gray day at the markets. we have seen the frankfurt dax brought down by that paula volkswagen shares. there are some games in london and paris. shares in the usa are down more than 20% after zurich insurance abandoned its takeover bid. >> we will go to iran where french business leaders are visiting. they are ho

." >> announcer: welcome back to the volkswagen passat post-game report. michaels and chris clint worth. >> al: that rabbit's foot moves back and forth. the cowboys through the years have lost a ton of games they should have won. once in a while they win won they should have lost. >> cris: it was all tony romo. he was gibb tven the opportunitt a lot of quarterbacks are given that same opportunity. no time-outs and he took them the length of the field. >> al: giants will play atlanta next week at home. dallas goes to philadelphia. and we will be going to green bay. seattle against green bay. we saw when the schedule came out, how great is this going to be? chicago looked good. >> cris: green bay's got news things happening there. any time there are decisions to be made as a coach, you have to be accountable for them. they decide to go for onside kick, a little pooch kick that didn't work out. not -- honest live not thly, no disagree with that. but the idea that pooch kick, i think they either completely mis-hit it which is the reports after the game or that

." >> announcer: welcome back to the volkswagen passat post-game report. al michaels and chris clint worth. >> al: that rabbit's foot moves back and forth. the cowboys through the years have lost a ton of games they should have won. once in a while they win won they should have lost. >> cris: it was all tony romo. he was gibb tven the opportunitt a lot of quarterbacks are given that same opportunity. no time-outs and he took them the length of the field. >> al: giants will play atlanta next week at home. dallas goes to philadelphia. and we will be going to green bay. seattle against green bay. we saw when the schedule came out, how great is this going to be? chicago looked good. >> cris: green bay's got news things happening there. any time there are decisions to be made as a coach, you have to be accountable for them. they decide to go for onside kick, a little pooch kick that didn't work out. not -- honest live not thly, no disagree with that. but the idea that pooch kick, i think they either completely mis-hit it which is the reports after the game or t

." >> announcer: welcome back to the volkswagen passat post-game report. al michaels and chris clint worth. >> al: that rabbit's foot moves back and forth. the cowboys through the years have lost a ton of games they should have won. once in a while they win won they should have lost. >> cris: it was all tony romo. he was gibb tven the opportunitt a lot of quarterbacks are given that same opportunity. no time-outs and he took them the length of the field. >> al: giants will play atlanta next week at home. dallas goes to philadelphia. and we will be going to green bay. seattle against green bay. we saw when the schedule came out, how great is this going to be? chicago looked good. >> cris: green bay's got news things happening there. any time there are decisions to be made as a coach, you have to be accountable for them. they decide to go for onside kick, a little pooch kick that didn't work out. not -- honest live not thly, no disagree with that. but the idea that pooch kick, i think they either completely mis-hit it which is the reports after the game or t

. >>> more than 500,000 volkswagen and audi diesel cars are being recalled tonight including the jetta, beetle, audi a3, golf and passat. volkswagen which owns audi intentionally violated clear air laws by using a device that evades emissions standards. volkswagen faces billions in fines and has been ordered to fix the cars. >>> let's check in, what about this weekend? lonnie quinn is off. and let's check back with vanessa murdoch. >> so far, so good. it really will be for the entirety of the weekend with the exception of early sunday morning. sunday will be my favorite day in quite some time. let's check in with the weather watchers. highs were 10 to 15 degrees above normal. we should have been 75. that wasn't the case today. so much hotter than that. riverhead was at 83, pleasant valley 85. 87 in east brunswick, new jersey. 58 degrees in greenwood lake new york. so lots of warmth still in place. stays that way for the first half of your weekend. right now we are live outside looking at lady liberty. yes, it's been a hazy day but the relative humidity still in the 30th percentile. it felt great. mostly sunny, 79 right

volkswagen vehicles were much levels. >> reporter: the carmaker ordered v.w. and audi dealers to immediately stop selling affected models of the beetle, golf, passat and a3. volkswagen admitted guilt and offered an apology. "i personally am deeply sorry we have broken the trust of the customers and the public. we will not and do not tolerate violations of any kind of our internal rules or the law." the e.p.a. says cars are safe to continue driving until v.w. fixes them. scott, tonight at least two members of congress are pledging to hold hearings on this issue. >> pelley: kris, thank you. audi models involved on our web site, cbsnews.com. tomorrow pope francis begins his first visit to the united states. he'll arrive from cuba where he celebrated mass today for tens of thousands in holguin, the fourth largest city. among those at the mass was the cuban dictator rauul castro. allen pizzey has found the communist regime is beginning to remove the chains from the church house door. >> reporter: massive settings like havana's our lady of mercy is a rare experience for most of cuba's catholic. the majority worship in makeshift churches like this one, no walls,

passat. volkswagen could face criminal charges and $1 billion in federal fines.kswagen set aside $17 billion to cover the fallout. the largest auto maker has ordered all of the u.s. dealerships to stop theing cars impacted by legislation. leon: now time to check on the roads. everyone wondering how bad it will get. lot ofwe see a congestion a while ago. area.the d.c. d.c. police have temporary closures in place on pennsylvania avenue as well area ong in the con -- as well as in the area constitution area. we are in bumper-to-bumper traffic. on 66 heading out of the city arlington torom falls church. it's as soon as you get to the capital beltway to 123 is where we have a crash. that is why we are seeing that congestion. on the inner loop and the outer loop for virginia, bumper to bumper delays. 11e spot you drop down to miles per hour. i want to focus on what we have now. spectators in the area of suitland parkway near alabama avenue. because of that police have shut it down. that is going on right now. really the only closure that we have in place in that area p

essentially it comes down to this, 2015 clean diesel models, that's about a quarter of what volkswagen sells, the passatgulf, the jetta, the beetle and some audi a3 models not being sold. also over the weekend, the ceo of volkswagen issued an apoll jish. martin winterkorn saying i am deeply sorry that we have broken the trust of our customers and public. we were talking to dr. winterkorn earlier this year and at that time he was hopeful of volkswagen dramatically increasing sales in the united states. that was one of the primary initiatives of volkswagen. it is currently number one in global sales. here's what dr. winterkorn told us in march about his prospects or his belief in growing its business in the u.s. >> translator: 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

volkswagen cars have been cheating emissions testses. >> i live in california and i don't want to drive a polluter. >> reporter: but little did cbs13 engineer bob hesse know his passatust that. volkswagen admitted this week to installing sophisticated software to beat emissions tests. the software, which senses through the steering wheel and speed, that the car was being tested turning on an override system to reduce pollution output. but after the test, the diesel cars would go back to normal emitting upwards of 40 times the legally allowed amount of nitrogen oxide a dangerous pollutant. the california air resources board which was involved in uncovering the scheme says the next step will be to get the cars in compliance asap. >> the certification testing that vw did indicates to us that they should be able to perform under our requirements. we just want to make sure they have made sure that they now all perform that way all the time under all conditions. >> reporter: the exact fix? still unclear. it will likely be a software update that many experts anticipate will lessen the vehicle's gas mileage. certified smogger says it's just visual inspection. with computers

the software is installed in volkswagen jettas, beetles, golfs and passats-- and audi a3's sold in the u.s. since 2008. the justice department has reportedly opened a criminal investigation of the automaker. investigations are also being launched in france, germany and south korea. >> woodruff: for more, we turn to john stoll,he is detroit bureau chief and global automotive editor for the wall street journal. he has been following developments in this story closely. john stoll, welcome. you have been covering this story closely. you've covered other auto industry problems. where does this one rank? >> it's up there. i mean, this is one because of the volume of vehicles we're talking about and the sort of transatlantic implications, 11 million is not a maul number when you talk about the u.s. car park. about 85 million vehicles are sold a year. that's spread over several years of production, but that's a large sum of cars. volkswagen right now is the biggest automaker in the world as of the first half of 2015. huge aspiration and obviously in germany they're big. >> woodruff: explain ex

here in brooklyn because the ceo of volkswagen will be here for the unveiling of the latest version of the passat. michael horn is here at a time when the company is not selling the current models that are in showrooms. let's remind people what happened over the weekend. volkswagen telling the dealer to stop selling models because of the emissions investigation. those models being 2009-2015, beetle, golf, jetta and audi a-3. and only clean diesel models which is about a fourth of what they sell and the clean diesel versions of the passat, model years 2014 and 2015. over in germany, the ceo winter kor november said i am personally deeply store -- sorry that we have broken the trust of our customers and our public. they try to get a better foot hold here in the united states. they are struggling here, despite by 2018 they are getting up to a million vehicle in sales. it is number one year-to-date to global sales. about 2,000 ahead of toyota. but you have to wonder what kind of hit sales will take here in the united states and what kind of damage this scandal will do. we're already noticing investor

but right now volkswagen's 2015 worldwide sales are barely ahead of toyota's. and for now u.s. sales of its passat, jetta, golf, beetle and audi a3 diesel models are on hold. those models account for about a quarter of the company's consumer business year. gm managed to put up record worldwide sales last year even after the deadly ignition switch recalls began. and toyota recovered very quickly from a scandal involving unintended acceleration a few years ago. >> in terms of sales i think it will have an effect. i think there will be some people who look at it and say i don't trust the company anymore. but when you think of how many vehicles have been recalled in the last five or six years, the numbers are staggering. more cars, you know, recalled from gm than they made. i think people start to -- the eyes glaze over after a while and they won't even be able to keep track of who did what. >> well, despite being the center of controversy, volkswagen is going ahead with a scheduled event tonight in brooklyn, new york where the ceo of volkswagen america will be in attendance. phil lebeau is also there

way, between 2009 and 2015, your most popular models manufactured by volkswagen that are sold here in the u.s., the golf, the passatall diesel models, the beetle, audi a-3 is another one of the models involved. >> so as we look at those models that are affected, you mentioned there's no recall yet. can people keep driving those cars? >> they can. they can continue driving them and eventually there will be some type of a remedy where they'll have to bring it into the dealership and those vehicles will then be made compliant with all the clean air standards that they were supposed to be compliant with when they were manufactured. >> thanks a million, phil, as always. phil lebeau in chicago. >> we all know credit card fraud is a big problem in this country. in two weeks the u.s. will become the last of the g20 nations to adopt chip-enabled debit and credit cards as the national standard. and while the cards may reduce one type of fraud, they could actually increase another. and though card issuers and retailers are on board with the change, mary thompson tells us that non-bank atms may remain a prime target for crimin

volkswagen claims it installed the software in 11 million vehicles around the world. here in the united states, investigators say the cars affected include diesel models of the jetta, the beetle, the golf and the passat as well as the audi a3. volkswagen will set aside more than $7 billion to cover the cost of fissixing the cars invod and to, quote, win back the trust of its customers. jeff flock is live outside a with volkswagen dealership in evanston, illinois, just north of chicago. what about the estimated 482,000 cars that are sitting on american driveways and parking lots right now? >> reporter: they're kind of screwed as far as we can tell, shep, because people that know about these things tell us there's no great way to fix these cars. if they change the software, essentially they're going to sacrifice fuel efficiency and performance, so there's no good way to do it. they either have to buy these cars back or compensate the owners of these vehicles and that's why they set aside $7 billion because that's going to be very costly. >> they have apologized essentially for getting caught it looks to me, jeff. are executive heads going to roll? >> reporter: i don't think there's any way that somebod

previously were thought to have this issue, only 5 million volkswagens will need to be serviced according to vw. the golf sixth generation, passateration and first generation of tiguans. you can see volkswagen down better than 2%. back to you. >> sue herera, thank you very much. >>> the apple watch may be courting the luxury watches with timepieces, but swiss watchmakers are not standing by quietly. tag hauer announced it's partnering with google, and hublot is announcing the expansion of a swiss factor. talking to us is the president division, which includes the jean-clau jean-claude, great to have you back. good morning. >> yes, good morning. good morning. >> last time we had you on, your argument was that the apple watch would be good news for makers of watches everywhere, it would reeducate, especially young people, to wear something on their wrist. has that point of view come true, do you think? >> oh, yes, i believe so. i believe very much so. they did a great job. they really put something on the wrists of this young generation which would forgotten to wear a watch. so somehow the apple watch is a great promoter for for t

vog volkswagen halting all sales that use the clean diesel engine, jetta, passat and audi a3.he move is in response the german automaker used software to claim its cars ran cleaner than it actually did during emissions test to get around the new epa emission rules. they have agreed to cooperate with the investigation. >> one thing to be seen is whether or not they're going to let those cars back on the road. >> which will be interesting. >> exactly. >>> coming up right now at:00, sounded likegonfire. windshields shatter overnight. >>> an emotional day as many people prepare to return to see what's left of their neighborhoods and homes devastated by the valley fire. >>> a teacher aide accused of molestation and now the school where he worked is forced to shut itses. >>> "today in the bay" starts right now. >>> a very good monday morning to you. thank you have joini thank you for joining us. >> mike inouye keeping an eye on the roads. kari, it will be cooler. >> it will be cooler. but today we have to deal with the sizzle, once again. 55 degree in the north bay and 64 degrees in

passat. >> our company was dishonest. >> reporter: now, volkswagen could face criminal charges and $18 billion in federal fines. >> the stock is down more than 30%, just in a couple of days. i mean, that's catastrophic for if they try to pin this on lower-level people, that may not fly. >> reporter: volkswagen says it's setting aside $7 billion to cover the fallout. the world's largest automaker has ordered all of its dealerships to stop selling cars, impacted by this investigation. >> reena and phillip? >>> and david petraeus appeared on capitol hill. the retired army general admitted to the senate armed services committee, that he made a serious mistake, one he calls a violation of public trust placed on him. petraeus made recommendations on the u.s. and how they should increase support for those fighting islamic militants. >>> the drug company that hiked the price of a life-saving drug about 5,000% says it will lower the cost. but the ceo who became a target of widespread public outrage, refuses to say what the new price will be. >> reporter: headlines turned martin shkreli into the most ha

volkswagen. present theevent to new faÇade. -- passat.id to hise and credit, the first thing he did was apologize for this and make what so far is until last night the only public statement from an executive. listen to a piece of that. dependshorn: our future on turning this into an opportunity to learn, to improve, and we had been permitted to do so. i'm confident and personally committed that this company will do what it needs to be done to make things right. to make things right. he says they will pay what they need to pay also, which could be a high bill. scarlet: it's like $30,000 per vehicle. matt: that's the fine. we were throwing around $18 million. they have set aside $7.3 million already. imagine if you bought a volkswagen with clean diesel, you brought a product to do one thing, you would take it back and say here is your product come i want the money back. if there are 11 billion of those, that's going to be a pretty hefty bill as well. scarlet: brendan greeley also owns some of that. the bloomberg team is very familiar with h

at the core they have the volkswagen brand, which sells the passat.hey have over 500,000 employees globally. winterkorn won the power struggle on the vw side back in april, but there is supposed to be a vote on friday that will extend his contract into 2018. will that take place? hans: that is what we're trying to figure out. martin winterkorn saw he had a contract extension. when i interviewed him a week ago, he hedged on this. i do not know if it is an open question now, but it is a difficult time for volkswagen. tom: hans nichols, thank you so much. that was brilliant with francine and hans. 597,000 employees. ford motor has fewer. i had no idea how big it is. of those employees, by the way, are in germany. down 21%r stock is this morning. we have a wonderful guest this money to synthesize all we observed last week and to drive it forward. adam pozen's formerly a member of the bank of england. really looking forward to this. a lengthy conversation with dr. economy going forward. from london and from new york, we welcome you. it is "bloomberg survei

volkswagen vehicles were much higher than their certification levels. >> reporter: the carmaker ordered vw and audi dealers to immediately stop selling affected models of the beetle, golf, jetta, passat a3 model years 2009 to 2015. volkswagen's ceo admitted guilt and offered an apology in a statement. "i personally am deeply sorry that we have broken the trust of our customers and the public. we do not and will not tolerate violations of any kind of our internal rules or of the law." the epa says cars are safe to continue driving until vw fixes them. scott, tonight at least two members of congress are pledging to hold hearings on this issue. >> kris, thank you. we have the list of vw and audi models involved on our website, cbsnews.com. >>> tomorrow pope francis begins his first visit to the united states. he'll arrive from cuba, where he celebrated mass today for tens of thousands in holguin, the fourth largest city. among those at the mass was the cuban dictator raul castro. allen pizzey has found that the communist regime is beginning to remove the chains from the church house door. ♪ hallelujah >> reporter: mass in magnificent settings like havana's our lady of mercy is a rare ex

volkswagen's smog test scandal has exploded. the world's top selling carmaker value. a stunning 11 million diesel cars popular models like the beetle, passat, jeddah and gulf contain software rigged to evade emission controls. the company is promising to pay for repairs but many car owners are skeptical. the cheat beginning at an emissions testing stations. the controls limiting emissions would then switch on but after the test, the controls switched off again meaning the car would emit illegal levels 40 times higher than allowed. >>> the drug company which hiked the price of a life saving drug 5,000 price says it will lower the cost. the ceo who became a target of widespread public outrage refuses to say what the new price will be. the company obtained rights to sell the drug in august. from $13.50 per pill to $750. >> also dropping the price for an amazon prime membership to celebrate its five emmy wins, the online shopping giant is offering prime for $67 down from the usual 99 but the offer is only good friday and it's only good for new members. >>> instagram has hit a milestone reaching 400 million users sharing 80 million photos a day

overnight volkswagen throwing a huge party to celebrate their new line of passats, including this energeticnny kravitz. ♪ but the other headline at the event, a huge company mea culpa. >> we've totally screwed up. >> reporter: volkswagen ceo michael horn acknowledging the company knowingly sold 500,000 diesel-powered cars in america which intentionally faked emissions tests. customers in their cars emitting as much as 40 times the legal pollution limit. >> so let's be clear about this. our company was dishonest. >> reporter: now the german automakers face billions in fines, while their executives could face criminal charges. volkswagen admitted they intentionally put these software programs to go to a cleaner mode during official emissions testing. a fact not lost on its loyal fan base thinking they were environmentally friendly. >> regardless of how much they have fudged by, it's the fact that they lied in the first place because that's going to give me concern. >> reporter: volkswagen halted all u.s. sales of the diesel cars and pledged to cooperate with regulators. still the show went on

volkswagen. the company has admitted to cheating on emissions tests. >> a lawsuit has been filed already in new jersey and brian thompson has the latest. >> for manhattan computer lover, a passat he brought back five years ago was to be his environmental statement. he thought emissions in the tailpipe would be better for getting better mileage. >> i thought it wouldn't be bad for the environment, but now i feel guilt. i actually want to take it out. >> he was one of the first to file a lawsuit against volkswagen for what now the company admits trying to get around emissions by actually polluting 40 times the legal limit when driven on the road. at this news conference with levin's attorney, jay rice -- >> they fooled all of us, because our air has been polluted far greater than it should have been. >> reporter: volkswagen officials have already started apologizing, admitting the cheating while setting aside billions for recalls and repairs. attorney general eric schneiderman says he will begin his own probe. now vw has to worry about lawsuits, a class action filing and motorists who won't buy again. >> i don't know how i'm supposed to trust a company that feels like it's all r

. >>> volkswagen installed software that allows the car to detect when emission testing is being done and then emit fewer pollutants. the cars include jetta, beetle and passate justice department says it could fine vw as much as $18 million for evading the smog standard. >>> a few dozen students affected by the valley fire in lake county were finally able to go back to class today. pope valley elementary school reopened its doors this morning. attendance was voluntary as ktvu's christina rendon tells us, only about half of the students and teachers returned. >> reporter: there's not too much activity, but at pope valley, cartwright was up and ready for class. >> i teach class, and i'm also the principal and superintendent. >> he showed us the class that has been missing for several days. >> there's going to be kids that are not ready to come back. but it's my job to be ready for them. >> we don't know if our house is going to burn down or not. we have cows so we don't want the cows to get burned. >> it was really smoky and the sky was red. you couldn't really see anything. >> everything really. not being evacuated anymore. having like an actual sky instead

passat, jetta, the golf and the audi a-3, as well. abc's david kerley tonight with the question so many car owners are now asking. >> reporter: volkswagen's emission admission growing dramatically tonight, covering those 11 million cars worldwide, including -- >> we really wanted an environmentally responsible car. >> reporter: lisa dropkin's one month old vw golf. it's one of the half million u.s. cars with software that defeats emission tests. is it criminal? >> it does feel criminal. >> reporter: how are you feeling? >> i'm just -- i'm so disappointed and, frankly, just pissed off. >> reporter: the vw cheat begins here at an emissions testing station. since 2009, vw inserted software that sensed when one of its diesel cars is hooked up for a check. the controls limiting emissions would then switch on. but after the test, the controls switched off again, meaning the car would emit illegal levels of pollutants, up to 40 times higher than allowed. "we are working hard to find out exactly what happened," vw's ceo said in a video statement. just last night in new york, vw celebrated with lenny kravitz. the unveiling of a new car in the mids

passat, no 2009. that car will continue to be an unimproved lemon. scarlet: volkswagenat is under scrutiny. that is according to the germany transportation minister. they are under probe. brendan: the epa's taking steps to counter future emissions chief of announcing changes on how they test emissions for a diesel powered cars. on road test will be added. vw software has been tricking testing machines for seven years. those are some of your top stories about the world, and evidently about my car. scarlet: much more coming up. we will talk about google and some issues with the u.s. antitrust authority. ♪ brendan: welcome back. i am brendan greeley with scarlet fu. in washington, lawmakers from both sides of the aisle are reacting to the shocking resignation of house speaker john boehner and for the reason he steps down. i have not had time to think about what i am going to do in the future. i have no idea. but i do know this -- i am doing this today for the right reasons. and you know what? the right things will happen as a result. scarlet: and emotional john boehner the

passat. i went to this party in brooklyn where they had lenny kravitz playing to introduce the redesigned model. had michael horn speaking about it. the first volkswagenxecutive to publicly address this to a crowd. probably the only one for a little while. cars tost fix the prevent this from happening again and we have to make things right. with the government, the public, our customers, our employees, and our dealers. matt: dealers is a huge part. they have a whole bunch of inventory still sitting on their lots of they cannot get rid of. and angry customers coming back and saying i don't want you to fix my car because if you just catch the software i will have higher fuel consumption to it will probably produce soot. and it don't have as much power because the emissions fix will limit the amount of pickup your car is capable of. i think they will probably have it is something like by the cars back. it will be a very costly thing. i asked carlos this morning who was unveiling a new car of his own, the nissan altima, what he thought. stocks across the board have gotten crushed. are putting a communique reminding people about improvement over the last t

volkswagen, and that's, again, if we see a big drop-off in sales worldwide. this stop sale order still in effect for those clean diesel versions of the passat, the jetta, the gulf and beetle and the audi a-3. >> if you drive a car or effectively are driving an illegal vehicle. number two, how the heck does this happen? i mean, is it literally like you're in germany, and sh guy says, hey, hans, remember that software i developed to deceive emissio emissions? can you throw it, on like, 11 million cars? how does that happen? >> well, it happened back at least 2007, 2008 is the time period. if you think back to then, because it started with the 2009 models, remember at the time there was a lot of speculation just beginning here in the united states about government incentives for clean burning vehicles. not to say that's the reason this occurred because we don't know exactly why it occurred or who is involved in the decision making process, but that is sort of an interesting context to keep in mind. you're right as far as this is not just one engineer in germany saying, hey, let's put this software in there that only goes into effect when these cars are going mroou

volkswagen. we have a list of the vehicles involved, it's about half a million vehicles. they include the 2009-2015 jetta, the beetle, the gulf, the audi a3 and not on that list, but the passat came up with a way to turn off the emissions controls except when they were being tested by the government. pretty nifty. as we said, half a million vehicles almost. if you do the math on what the fines could be, it would be over $18 billion. that's one of the reasons the stock has just plunged today. the ceo of vw apologizing for this, apparently not denying it at all. he says i'm personally sorry that we've broken the trust of our customers and the public. pretty amazing, you know? toyota, as you mentioned, trish, toyota and gm both this a lot of hot water, but they didn't do it on purpose. these guys, apparently, they did it on purpose. trish: oh, my goodness. jeff, thank you very much. another story we're watching right now, two wildfires burning in northern california, and they have destroyed nearly 1700 homes. crews say they are making gains on one of the worst wildfires in california history. that blaze is now 70% contained as of today. 500 homes -- 3500 homes are still being t

volkswagen sales around 6% or 7%. the husband one of the criticisms. not competinglly because they have not got highbred or electric fast enough. they have not rolled out a lot of new models. the sought -- passat they are not fresh models. this is something we expect to be a formality. i suspect that is no longer a mere formality. it seems the lack of exposure is the problem. thank you. whati want to know happened. what kind of discount will they give you? we will take a break. china's president makes the first u.s. state visit but with tensions growing oversight or hacking and the governments market intervention over the summer, things could get a little tense. we will talk about ♪ that when we come back. ♪ guy: it is 7:15 a.m. and london. 8:15 a.m. in frankfurt. here are the stories you need to know. anna: the u.s. justice department is conducting a criminal investigation into volkswagen after they admit to emissions tests. they are facing to buy back cars from unhappy customers. executives. apologized saying, "we have totally screwed up." federal reserve officials said the u.s. economy is expand -- strong enough to expand. lockhart remains confident policy will be tightened this year. conce

it's so brazen that last night the ceo of volkswagen of america, the candor from him at the event here in new york in brooklyn where they up vailed the new passatone says you rarely hear this. >> our company was dishonest with the epa and the california area resources board, and with all of you, and in my german words, we totally screwed up. how often do you hear that? we totally screwed up, and when i talk to people in germany, when i talk to people who work with volkswagen in europe, they say the same thing. this is scramble mode. >> how many heads roll? >> quite a few. >> does he keep his job? >> michael horn's relatively new in the position. i would be surprised if his head rolls. keep in mind he's -- >> we have to find out who knows about this. looks like they've known for it for a year, wrangling with the epa, and said it was a strange co coincidence. >> right. >> someone wrote the code. this was not an accident. >> absolutely. this is not code -- >> someone knew. >> watch this. >> here's the difference. a few years ago, hyundai and ford had incidence where their vehicles were not getting the miles vehicles advertised. if you look at thos

passat. the company said vw is cooperating with the investigation. we are unable to comment further at this time. as you take a look at shares of volkswagenkeep in mind that ts up to volkswagen and the national highway traffic safety administration to ultimately do a recall, but the epa says today ts for it is forcing volkswagen to fix these vehicles. this is a big story with volkswagen being accused of sem p essentially putting in software to cheat clean air test approximates. >> quite a serious accusation. the stock down nearly 4%. >>> aetna upgraded from buy to hold saying the health insurer's business has been under valued by investors. today it is down nearly 1%. ak steel expecting a smaller than expected loss thanks to cost savings efforts and also lower raw material expenses. that stock plunging more than 50% this year. in trade today ts doit is down y 2%. >>> our next guest expected the fed to raise rates yesterday. now he says december. stuart hoffman is the chief economist with pnc. why do you think the fed didn't move yesterday and do you quarterly with their decision in any meaningful way? >> not in a meaningful way, although

models, talking about the passat, the jetta, the golf, the beetle, the audi a3, they are on a stop sale basis now, in other words, they are on the lots. look at shares of volkswagenk today relative to any news from the executive committee meeting with volkswagen, with martin, gu but, again, the stock showing a bounce bag today, guys, but it was beaten up over the l.a. couple days. >> phil, stay with us. we'll bring in mike jackson right now. mike happens to be the chairman and ceo of auto nation, the largest vw dealer in the country, and, mike, the question has to be, what the heck, how did it happen? it's not a rogue engineering who did this, but a team of people who knows how high in order to get this through. >> becky, unfortunately, you're absolutely right. look at the scale of the decepti deception, over six years, 11 million vehicles challenges from the regulators, starting three years ago, already having one recall last year that didn't really resolve the issue at all. it points to a systemic failure at the largest automotive manufacturer in the world. this year, one of the most prestigious and respected manufacturers, and so it is absolutely shocking. it'