Volkswagen Australia has blamed the Federal Government for delays to its emissions recall scheme while reiterating its position that the brand has not broken any local laws.

Speaking with reporters in Sydney, Volkswagen Australia managing director Michael Bartsch says a proposed fix for thousands of models equipped with a computer-coded emissions defeat device is with the Department of Infrastructure and Regional Development.

"76 countries have acknowledged and affected the fixes. There is only one country that has not yet approved it, and that's Australia," he says.

"We have those approvals sitting with the Department of Infrastructure and Regional Development.

"They most eloquently said the ball is in their court."

Unlike overseas representatives that have apologised for Volkswagen's actions, Bartsch maintains that the brand has done little wrong in Australia.

Volkswagen Group Australia managing director Michael Bartsch Photo: Supplied

"Under Australian law we don't believe there is anything in our car which is illegal," he says.

"We have not broken any laws.

"We do not believe that our cars have or will ever have broken environmental standards in Australia."

Volkswagen says about 84,000 local Volkswagen and Skoda vehicles are fitted with software that can affect their emissions during dynamometer "rolling road" tests used to assess vehicle emissions overseas.

The complex issue affects models sold around the world. Volkswagen's emissions defeat device, which can alter the car's behaviour during a test cycle, was put in place to help turbo diesel models pass stringent emissions laws in the US.

Bartsch criticised Australian media coverage of the diesel emissions scandal, saying the issue had been oversimplified.

Volkswagen faces billions of dollars in US fines and government-ordered compensation that will not apply in Australia, where local laws allow cars to emit significantly higher nitrogen oxide levels than in America.

"One of the challenges that we've had here is managing the dialogue and the tonality that is coming from America as distinct from the Australian/European context," Bartsch says.

"The situations in Australia and the US, or EU counties and the US are very, very different."

Volkswagen says removing an emissions defeat device lying dormant in the software of many Australian vehicles will have "no material difference" on the performance of local cars. But the mere presence of that software is at the core of a number of class action lawsuits pursuing Volkswagen in Federal Court.

The manufacturer's local chief says there is "no need for a class action", as Volkswagen will soon finish recalls planned for a range of diesel models.

As for whether Volkswagen will have to compensate local customers: "It will be a matter for the courts to determine", Bartch says.