VW offices raided in emissions probe

The raids were carried out in Wolfsburg and at a number of other locations.

“Volkswagen Group Australia takes this issue extremely seriously and is continuing to gather all the facts from our head office to support any rectification plans in Australia”, managing director John White said in a statement. 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.

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

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.

VW’s top USA executive is scheduled to testify before Congress Thursday morning.

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

Underlining the uphill task to winning back confidence, Congressman Peter Welch said: “VW is the Lance Armstrong of the auto industry” – a reference to the United States cyclist who had to be stripped of seven consecutive Tour de France titles after he was caught doping.

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”.