Even if you ignore the loss of reputation, the fines and tort costs of
this diesel cheating debacle could cost them $40 billion or more. (the
emphasis on "more")
They still have not figured out how to deal with all of the
non-conforming cars in the US that suddenly became scrap metal (you
can't legally drive them here)
Now other countries may be reaching the same conclusion so we can't
simply dump them abroad.

It is a stinky problem for them and Germany as a whole since VW is a
big part of their economy.