Volkswagen's new chief Matthias Mueller

VW chief Matthias Mueller said Tuesday the 6.5 billion euros ($7.3 billion) the company has set aside in the third quarter for costs from its emissions cheating scandal won't be enough.

"It includes the estimated cost to fix the affected vehicles," he told employees. "But it won't be enough. We must prepare for significant penalties. And many could take the events as an opportunity to claim damages against Volkswagen."