Volkswagen has admitted that it developed a computer to cheat emissions test.
A total of 11 million of its cars worldwide are fitted with software which hides the true emissions of vehicles while they are being tested.
The scandal has wiped out more than a third of the company’s value on stock markets in two days. Lawyers have filed at least 25 class actions on behalf of scores of car owners across the United States. The car-owners involved in the lawsuits said they were hooked into buying Volkswagen vehicles wih ads claiming the cars were clean, smart and eco-friendly.
Volkswagen New Zealand said the cars it has sold here were sourced from Europe, where emissions testing standards were different to those in America, where the software was used.
VW CEO Martin Winterkorn has resigned from his position as a result of the emissions scandal.
