VW braced for lawsuits worth billions as chief executive resigns

company’s headquarters in Wolfsburg. Mr Winterkorn announced to the stock market last night that he was “clearing the way for a fresh start”. It came as:

There were suggestions the scandal could widen to fuel consumption data after consumer groups warned they too could be based on flawed testing.

The German public prosecutor’s office in Brunswick started a “preliminary investigation” into VW employees while American authorities have widened criminal inquiries.

Natalie Bennett, the Green Party leader, led calls for authorities to consider corporate manslaughter charges.

VW is braced for class actions for billions of pounds in the US as British lawyers also urged UK motorists to sue.

Under new legislation in the Consumer Rights Act, people affected could launch a class action against the car manufacturer. Rival car makers may be dragged into proceedings too if they are also found to have cheated on emissions tests.

Defeat software on 2.0 litre VW diesels was discovered by a US regulator on Friday, prompting a 35 per cent slump in shares over two days.

There was no written evidence of a specific question or answer naming VW in the exchange between the German Greens and the ministry in July. The ministry wrote: “The government shares the view of the European Commission that there is no extensively proven means of preventing defeat de- vices.” Oliver Krischer, deputy leader of the Greens, told N24 television: “The government told us in July that it knew about this software, which has been used in the USA. It’s clear they knew the software was widely in use.”

Claims that Mrs Merkel’s government should have done more were backed by a forum of German environmental businesses. Alexander Dobrindt, German transport minister, said in Berlin yesterday that the allegation that the gov- ernment had acquiesced in manipulation was “false and indecent”. The German government has set up a commission of inquiry, headed by Michael Odenwald, a junior transport minister.

Meanwhile, Volkswagen is facing a class action lawsuit in Italy from a consumer group which found a “huge discrepancy” between advertised and actual fuel consumption on a VW Golf model, leaving drivers an estimated £350 a year out of pocket.

£350 The estimated cost to drivers of an alleged discrepancy between advertised and actual fuel consumption on a VW Golf