Volkswagen boss faces probe over fraud allegations

German prosecutors have launched an investigation into fraud allegations against former Volkswagen boss Martin Winterkorn over the carmaker’s rigging of diesel emissions tests.

The German company also suspended three top engineers as it tried to get to grips with a scandal which has knocked more than a third off its market value, threatens to rock the global car industry and could damage Germany’s economy.

Volkswagen has admitted cheating diesel emissions tests in the United States but Germany’s transport minister says it also rigged tests in Europe, where it has much bigger sales, and it faces the worst business crisis in its 78-year history.