By Monica Houston-Waesch

FRANKFURT--Volkswagen plans to start one of the biggest recalls in the company's history in January to fix software that manipulates emission tests, with the recall likely be completed by the end of 2016, Volkswagen Chief Executive Matthias Mueller said in an interview with the Frankfurter Allgemeine Zeitung daily.

A spokesman for Volkswagen AG wasn't immediately available for comment early Wednesday.

"If everything goes as planned we can begin the recall in January. By the end of 2016 all cars should be okay," Mr. Mueller said, according to the article.

The company will present technical solutions to Germany's motor vehicle office this week for approval. The company "doesn't need three solutions, but thousands," since the EA 189 diesel engine was broadly used in many models with different country-specific variations. He repeated that for most cars a software update at a local service center would suffice.

"Some vehicles will need new fuel injection and catalytic converters," he said.

Volkswagen has admitted to using software in some models which manipulates the results of emission testing, allowing the company to sidestep pollution standards. Asked why the manipulation occurred, Mr. Mueller said a decision was reached to reintroduce diesel engines in the U.S., "and apparently adhering to strict U.S. emissions standards wasn't managed."

"According to what we know today, very few employees were involved, but naturally we will only know exactly in a few weeks, once the results of internal and external investigations are available," Mr. Mueller said.

On Tuesday, he addressed staff and said the company would try to avoid job cuts in the wake of the scandal, but warned that all projects and the company's investment plan of over 100 billion euros ($113 billion) were under review. The process wouldn't be painless, he told employees.

No decision regarding a dividend for the year has been made, he said in the interview.

"I haven't thought about that yet, that will be decided at the annual shareholders' meeting in the spring," Mr. Mueller said.

Mr. Mueller added the company has no intention now of withdrawing diesel engines from the U.S., and said he would be prepared to travel to the U.S. if needed.

"Right now, I have my hands full in Wolfsburg," he said.

Write to Monica Houston-Waech at nikki.houston@wsj.com

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(END) Dow Jones Newswires

October 07, 2015 02:41 ET (06:41 GMT)