Volkswagen has been issued a mandatory recall of 2.4 million diesel vehicles in Germany.
Europe’s biggest carmaker recently admitted to installing software that enabled it to cheat diesel emissions tests on up to 11 million diesel vehicles worldwide.
Analysts have predicted that Volkswagen could pay upwards of 35 billion euros ($40 billion) to cover vehicle refits, regulatory fines, and lawsuits.
German Environment Minister Barbara Hendricks said on Thursday the government should think about ending tax breaks for diesel cars and promoting electric vehicles instead.
In Europe tax breaks were given to diesel vehicles capable of passing emissions tests. Nearly half of all vehicles in the country are diesel based, compared to a relatively small number in the United States.
German Transport Minister Alexander Dobrindt said the country’s KBA automotive watchdog had ordered Volkswagen to start a mandatory recall of 2.4 million vehicles at the beginning of 2016.
The KBA is giving Volkswagen until the end of the month to develop a software fix for all 2.0 liter vehicles affected by the recall.
The company will also have until the end of November to come up with a technical solution for 1.6 and 1.2 liter vehicles.
The original recall affected 2.8 million vehicles. Officials in Germany later realized that 400,000 of those vehicles were no longer on the road.
On Tuesday, Volkswagen said it would cut investment plans at its core VW division by 1 billion euros ($1.1 billion) a year through 2019 and step up the development of electric and hybrid vehicles.