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BERLIN German prosecutors have launched an investigation Monday into allegations of fraud against the former head of Volkswagen Martin Winterkorn, showing their determination to quickly get to the bottom of a scandal over rigged emissions tests that shook the global automotive industry .
The German company also suspended three senior engineers, sources familiar with the matter told Reuters, as he tries to become familiar with a crisis affecting more than a third of its market value and could harm the economy German.
Volkswagen has admitted to cheating diesel emissions testing in the US, but the transport minister of Germany said he also has handled testing in Europe, where it has a lot more sales, and he faces the worst business crisis in its history of 78 years.
The German prosecutor office said it was investigating Winterkorn on allegations of fraud in the sale of cars with emissions data manipulated based charges filed by about 10 unidentified persons.
Winterkorn replaced as CEO by Friday veteran Matthias Mueller said when he left last week he did not know of any wrongdoing on his part and wanted to give the company a new start .
The crisis is an embarrassment for Germany, which has for years held up as a model of Volkswagen's engineering feats and lobbied against stricter regulations on carmakers The German automotive industry employs more than 750,000 people and is an important source of export revenue.
The automotive industry is crucial to the German economy He.
Scandal may have a significant impact on the German economy, Deputy Finance Minister Jens Spahn at a conference.
In a sign of Volkswagen's efforts to deal with the crisis, sources close to the case said it had suspended Heinz-Jakob Neusser, head of brand development at its core VW brand.
Also suspended were Ulrich Hackenberg, head of research and premium development Audi brand which oversees the technical development within the Group, and Wolfgang Hatz, Chief R & D brand Porsche sports car that directs the development of motor group and transmissions, they said.
A source told Hackenberg took legal action against the decision of Volkswagen and Audi have declined to comment, while the suspended executives could not be reached immediately.
Winterkorn, who was the head of Volkswagen for nine years and was the head of the highest paid executive on the blue-chip DAX stock market in Germany last year, also could not be reached for comment.
A source close to Volkswagen's board said its executive committee would meet on Wednesday to discuss the appointment of U S Jones Day law firm to conduct an external investigation.
Two German newspapers reported Sunday Volkswagen own staff and one of its suppliers had warned it a few years ago on the illegal use of so-called defeat devices to detect when a car has been tested and modifying the operation of the diesel engine to hide their emission of toxic nitrogen oxides.
Environmental campaign group Transport TE Environment said Monday that there was a problem of the wider industry as it released new data showing a new Mercedes, BMW and Peugeot use 50 percent more fuel than tests laboratory indicate.
TE said that its data did not show other companies were using defeat devices, but said the gap between laboratory testing and the road has taken such a measure for emissions of both oxides and carbon dioxide nitrogen that further investigation was needed to find out what the automakers were to manipulate the results.
The Volkswagen scandal was just the tip of the iceberg, said Greg Archer, director of clean vehicles to TE, adding the gap between laboratory testing and the cost of driving performance of a typical driver EUR 450 504 per year .
ACEA, the European Automobile Manufacturers Association, which represents the top automakers, said there is no evidence of the use of body checking devices is a problem across the industry.
In a statement Monday, he said he supported the development of tests updated U S and European regulators said they are working on stricter rules.
Volkswagen market value has dropped more than 25 billion euros since he admitted to cheating emissions testing U He faces investigations and potential fines from regulators and prosecutors, as well as customers of trial cheated.
Customers and dealers have criticized the lack of company information on what will happen to the 11 million vehicles have been equipped with these defeat devices worldwide.
There were signs Monday the vehicles would be recalled and repaired, with Volkswagen's Swiss distributor, saying a plan to refit almost 129,000 cars in his country would be presented to the Swiss transport authorities in October.
Volkswagen Audi flagship brand 2 1 million of its cars were affected by the scandal, including the A1, A3, A4, A5, A6, TT, Q3 and Q5 models.
The Minister of Industry of Spain said he would ask local Seat Volkswagen to pay the subsidies it received for fuel-efficient cars that broke the rules.
VW is in a dramatic situation This will be far from easy to restore the company's reputation and regain the trust of customers, new CEO Mueller said in a letter to staff Porsche seen by Reuters.
Some analysts wonder if he is the man for the job, given his more than three decades at the company.
He made a career in the VW system, then how could he argue credibly that everything goes better change now Commerzbank said Sascha Gommel.
At 1555 GMT, Volkswagen shares were down 7 percent to 3 May 99 euros.
Manufacturers fear now globally more costly regulations and lower sales of diesel cars.
Diesel engines use less fuel and emit less carbon - responsible for climate change - than standard gasoline engines, but they emit higher levels of toxic nitrogen oxides, linked to lung and heart disease deaths.
In most countries, diesel engines in passenger cars are a niche product, but their fuel economy and low carbon emissions made popular in Europe, where they account for half of all vehicles sold.
Volkswagen and other European manufacturers have promoted clean diesel technology, but the suggestion this was achieved by cheating on tests could affect the viability of the entire diesel industry.
Additional reporting by Reuters bureaus in Europe, Writing by Mark Potter; Editing by Janet McBride and Timothy Heritage.
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