German auto manufacturer Volkswagen recently announced that it is setting aside $8.8 billion in order to buy back or cover the expenses in order to fix all of its diesel-powered cars that were rigged with defeat devices in order to cheat emissions tests.

The sum is part of a larger budget which was deducted from the company's earnings last year. The budget will cover the repair costs and possible buyback of around 11 million affected cars.

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Volkswagen is still in the process of working a settlement agreement with the United States authorities in federal court. The company had presented a couple of contingency plans to the board but was rejected by federal authorities.

Volkswagen chief executive officer Matthias Mueller declared that the most important task for the company is to fix all the affected cars. He added that the company's core car business remains "fundamentally sound." According to Brietbart, Volkswagen chief financial officer Frank Witter said that the company will not propose any capital increase to shareholders.

Following the diesel engine scandal that shocked the motoring community, Volkswagen declared a loss amounting to as much as $1.8 billion in 2015. Back in 2014, the company declared profit of $12.2 billion. In order to cover this massive loss, Volkswagen is proposing a reduced dividend. On the other hand, Volkswagen claims that its financial situation is still stable.

In a statement acquired by USA Today, Mueller said, "We are not letting the crisis slow us down, but are stepping on the gas - in all of our brands, and in all relevant markets."

Volkswagen is also looking to diversify its auto division by throwing its hat into the electric vehicle market. The company is also planning to delve into digital services and zero-emissions vehicles.

Although Volkswagen did not provide a detailed report on these plans, market analysts predict that the company is aiming to enter the ride-sharing and car-sharing business. There are also rumors claiming that Volkswagen is setting up an independent company that will promote business in mobility services.

Mueller even said that electric cars will be on of Volkswagen's "hallmarks" and that the company is aiming to release 20 new car models by the year 2020.