VW’s headquarters raided by prosecutors as U.S. boss faces Congress

Lower Saxony prosecutors opened a criminal probe last month after Volkswagen admitted it used software to cheat on us diesel emissions tests for years.

The raids come as pressure on Volkswagen intensifies.

Pressure mounts on the German automaker Volkswagen to reveal details of pollution cheating scandal that has affected 11 million vehicles worldwide. Investigations are also been conducted into why the company did not act promptly to rectify the wrong doing initially itself and waited till September 3, 2015 to tell USA regulators about the defeat device installed in a few diesel engines to camouflage actual levels of toxic emissions.

The shocking revelations have wiped more than 40 per cent off Volkswagen’s market capitalisation, but the direct and indirect costs are still incalculable as the company risks fines in several countries and possible damages from customers’ lawsuits.

The auto manufacturer’s U.S. boss Michael Horn is due to be grilled in Congress by the United States house energy & commerce subcommittee with the hearing just getting underway now.

“We understand the disappointment and frustration felt by our customers, dealers and partners in Australia and apologise for any inconvenience this may cause”.

“This scandal is on the scale of Enron or Madoff”, he continues referring to the collapse of the energy firm amid massive accounting irregularities and the jailed former NASDAQ chairman Bernard Madoff ‘s Ponzi scheme.

Prosecutors say they are seeking material that would help identify those involved in the alleged manipulation and explain how it was carried out. “This serves a prompt and thorough clearing-up, in which Volkswagen has great interest”.