VW ordered to recall 2.4million cars

Volkswagen has been ordered to recall 2.4 million cars in Germany by the country’s automotive watchdog as a result of the ongoing diesel scandal.

German media reports suggest the KBA earlier rejected VW’s proposals that car owners could voluntarily bring their cars in for repair.

Meanwhile, Italian police have raided VW offices in Verona and Lamborghini offices in Bologna. Reports suggest Italian prosecutors are investigating alleged commercial fraud.

In separate news, the man tipped to become VW’s North America boss has resigned. The firm said Winfried Vahland was leaving because of ‘differing views on the organisation of the new group region’.

The company say it is currently investigating the scandal, but new chairman Hans Dieter Poetsch warned that answers would take ‘some time’.

VW has admitted that up to 11 million cars worldwide could have been fitted with the defeat device and has set aside €6.5bn ($7.4bn; £4.8bn) to cover the costs of the scandal, but some experts believe the final bill could be much higher.

Shares in the company recovered slightly last week but are still down almost 20% since the scandal first broke.