German investigation into Volkswagen widens

German prosecutors opened a new criminal investigation into possible tax violations in the wake of Volkswagen AG’s admission that it manipulated emissions readings.

Since Volkswagen scandals are an increasingly common occurrence, we’ll remind you the company found “irregularities” with their Carbon dioxide emissions data earlier this month as part of their internal investigation into the Dieselgate debacle.

Volkswagen has acknowledged it produced 11m vehicles worldwide with small diesel engines that contained software allowing them to cheat nitrogen oxide tests.

Volkswagen received tax breaks for producing low polluting cars that may not have qualified if the emissions tests were properly reported. Prosecutors have also said they are looking into the possibility that the company committed fraud. Details are still being finalized on a fix for 1.2-liter motors, but it should also just require a software update.

German prosecutors are said to be focusing on the discrepancy between real-world Carbon dioxide output and the understated emissions and fuel-consumption ratings that resulted from the cheating, according to a Reuters report. “The cost for the retrofitting is technically, physically and financially manageable”.

Once approved by the Environmental Protection Agency and the California Air Resources Board, it will be installed in the affected vehicles.

The carmaker – whose divisions include Audi, SEAT and Skoda as well as its truck and commercial vehicles – now faces the sizeable task of recalling 8.5 million vehicles throughout Europe.