BERLIN—German prosecutors said Tuesday they have widened their investigation of Volkswagen to include suspicion of tax evasion after revelations that some of its cars were emitting more carbon dioxide than officially reported.
Braunschweig prosecutor Birgit Seel told The Associated Press that the investigation was focused on five Volkswagen employees but would not release their names.
The focus of the investigation is on tax breaks Volkswagen received for producing low-polluting cars that it might not have qualified for if the emissions had been correctly reported, Seel said.
Volkswagen has acknowledged it produced 11 million vehicles worldwide with small diesel engines that contained software allowing them to cheat nitrogen oxide tests. Earlier this month, it also said it found “unexplained inconsistencies” in emissions carbon dioxide from more of its vehicles.
The news did nothing to hurt Volkswagen’s market rally, with the company leading the DAX during midday trading in Frankfurt with shares up 5.4 percent to 115.80 euros ($123.39).
The rise came the day after CEO Matthias Müller told company managers that all technical details on how to fix cars fitted with emissions rigging software in Europe would be provided to Germany’s Federal Motor Transport Authority by the end of November, and that most wouldn’t require major work.
