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Covers for TDI diesel Volkswagen, Audi, SEAT and Skoda engines are seen in Jelah, Bosnia and Herzegovina, in this September 29, 2015 picture illustration. Volkswagen said on Tuesday it will repair up to 11 million vehicles and overhaul its namesake brand following the scandal over its rigging of emissions tests. The German carmaker said previously about 11 million vehicles were fitted with software capable of cheating emissions tests, including 5 million at its VW brand, 2.1 million at luxury brand Audi, 1.2 million at Skoda and 1.8 million light commercial vehicles. About 700,000 of the 11 million diesel engines involved in scandal were manufactured by the company's brand Seat, a spokesman for the Spanish unit said on Tuesday. Refitting 11 million cars would be among the biggest recalls in history by a single automaker. Reuters/Dado Ruvic

Amid facing worldwide investigation, Volkswagen has announced to repair up to 11 million of its vehicles in a bid to restore people’s confidence in its falling brand. The news comes after the company was discovered using illegal software in its diesel-powered cars to evade standards of emissions tests in the U.S.

On Tuesday, new CEO Matthias Mueller said customers would be informed in the coming days to refit their diesel vehicles, reported Reuters. Analysts fear that this initiative could cost Volkswagen more than US$6.5 billion (AU$9.30 billion).

However, the German carmaker hasn’t disclosed how it will refit the vehicles or how this might affect vehicles' mileage or efficiency, which are significant to the customers. The company is due to submit an outline to Kraftfahrt-Bundesamt, the German federal motor transport authority next month.

As more information unfolds regarding the VW scandal, its shares have been plummeting, close to touching a 4-year low. At the stock's lowest point, the company is facing more than US$30 billion (AU$42.87 billion) wipe-off in its market value since the scandal began.

With the company admitting that 11 million of its diesel-powered cars worldwide had been installed with pollution test-cheating “defeat device,” many Asian countries have initiated an investigation into Volkswagen diesel cars. Germany's transport minister reported that Europe, where Volkswagen sells 40 percent of its vehicles, has also been affected with such cars. It is believed that the software kept down engine costs and improve profit margin.

Currently, Volkswagen is under tremendous pressure to put a full stop to a crisis that it hasn’t faced since 78 years of its journey. "We are facing a long trudge and a lot of hard work," Mueller said. Mueller was appointed CEO on Friday to replace Martin Winterkorn, who now faces investigation over Volkswagen emissions scandal.

The crisis has proven to be embarrassing for Germany, where Volkswagen has always modelled as an engineering prowess. It reportedly hires more than 750,000 people and has been a major source of export income.

Klaus Mohrs, mayor of Wolfsburg, where 70 percent of population is working under Volkswagen, said on Monday that the share plunge was expected. As a result, he was forced to announce an immediate budget freeze and hiring ban.

While the wider car market has also been affected by the crisis, with people becoming apprehensive of buying diesel-powered cars, regulators and prosecutors across the globe are investigating into the scandal. According to Reuters, many regulators in the U.S. and Europe have spoken about taking stern actions against companies that fail to comply with pollution standards.

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