Not all need to be recalled.
Only those sold in certain "developed" countries need to be recalled. Most of the world cares much less about emissions or any air pollution until they can no longer breath and even then they won't adopt equivalent standards.
As for VW they took advantage of a system that assumes companies wouldn't break the law. We need to keep that presumption of innocence as it is the cheapest enforcement system but for it to work there needs to be very serious consequences when abused. Among them should be restricted access to markets.
If you can't play by the rules, you shouldn't be allowed to play at all.