Audi German headquarters raided in probe

German authorities BERLIN — searched the offices of luxury automaker Audi on Wednesday in connection with the scandal over cheating on diesel emissions by its parent company, Volkswagen.

The raids were part of a fraud investigation into Ingolstadt-based Audi, launched by prosecutors in Munich several weeks ago.

Volkswagen and Audi brand vehicles with diesel engines make up the bulk of the vehicles caught up in Volkswagen’s emissions cheating scandal.

Munich prosecutors’ spokesman Ken Heidenreich said the current investigation focuses on who was behind the use of the software in 80,000 Audis sold in the U.S. between 2009 and 2015 with 3.0-liter six-cylinder diesel engines.

No specific individuals are named in the investigation, he said.

“The execution of the search warrants is meant to clarify which persons were involved in the use of the relevant technology and, where applicable, were involved in providing inaccurate information to third parties,” Heidenreich said in a statement.

Audi spokesman Moritz Drechsel said that the raids were focused on the company headquarters in the Bavarian city of Ingolstadt and at its plant in Neckarsulm in the neighboring state of Baden-Wuerttemberg.

“Audi is fully cooperating with authorities as we have the highest interest in clarifying matters,” Drechsel said, adding that he could not comment further due to the ongoing investigation.

Volkswagen has admitted it equipped diesel engines with software that detected when the vehicle was being tested and turned the emissions controls off during everyday driving. The result was cars that emitted some 40 times the U.S. limits of nitrogen oxides, a pollutant that can harm people’s health. Millions of cars worldwide had the deceptive software.

On Friday, Volkswagen pleaded guilty in the U.S. to a scheme to get around American pollution rules. If a judge agrees to the Justice Department’s sentencing recommendation, the scandal will cost the company more than $20 billion in the U.S. alone.

Americans spent WASHINGTON — only slightly more last month at retail stores compared with January, a sign of consumer caution despite rising optimism about the economy.

The Commerce Department said Wednesday retail sales ticked up a seasonally adjusted 0.1 percent in February, after a much bigger gain of 0.6 percent the previous month. January’s gain was revised higher.

The figures suggest that strong job gains this year, near recordhigh stock prices and decent pay gains haven’t yet lifted spending. But last month’s sluggish pace could prove temporary.

Economists note that spending was likely held back by delays in tax refund payments. A new law has required tougher scrutiny of a tax credit claimed by lower-income taxpayers. Wal-Mart said last month that the delay had slowed sales at its stores in February. Other retailers have reported similar concerns.

Yet tax refunds have started to flow this month, which could trigger a rebound.

Economists were also encouraged by the upward revisions to January’s sales data, which point to potentially faster growth in the first three months of the year.

A separate report showed inflation rose in February and is now comfortably above the Federal Reserve’s target of 2 percent.

“Inflation is trending gradually higher and underlying retail sales are healthy enough,” said Paul Ashworth, chief U.S. economist at Capital Economics.

Sales rose in February at furniture stores and home and garden centers. But they fell sharply at electronics and appliance stores.

Sales also fell at gasoline stations, though that mostly reflects lower prices. Clothing stores, sporting goods retailers and department stores also all reported lower sales.

There are several additional factors that could drive spending higher in the months ahead. Consumer confidence soared to its highest level in more than 15 years in February, according to the Conference Board, a business research group.

Hiring and average hourly pay growth have picked up since the new year. Americans’ finances are in better shape, with average home prices back to their pre-recession levels in much of the country.