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General view of the Volkswagen power plant in Wolfsburg, Germany September 22, 2015. Martin Winterkorn's days as head of Volkswagen AG appeared numbered on Tuesday after the German carmaker said a scandal over falsified vehicle emission tests in the United States could affect 11 million of its cars worldwide. Shares in Europe's biggest carmaker plunged almost 20 percent on Monday after it admitted using software that deceived U.S. regulators measuring toxic emissions in some of its diesel cars. Reuters/Axel Schmidt

Former U.S. Volkswagen CEO Martin Winterkorn is under investigation following the news of the emission scandal that damaged the company’s reputation largely. As tensions escalated, Winterkorn put forward his resignation last week, saying that he wasn’t aware of any “wrongdoing.”

On Monday, German prosecutors reported that Winterkorn is now under investigation that was prompted by some unidentified people because they felt he played a significant role in the broadening of the diesel emissions scandal. However, Volkswagen’s supervisory board refused to agree on Winterkorn’s involvement in the installation of the defeat devices in their diesel engine cars.

The U.S. Environmental Protection Agency, or EPA found that the company used illegal software to evade the emission testing standard for which it has been directed to pay US$37,500 (AU$52,148.63) for each car, reported Reuters.

Following Winterkorn’s investigation reports, Volkswagen Audi unit, which is a crucial source of profit for the German carmaker, said that more than 2 million of its vehicles, mostly in Europe, had the software installed that could be used to trick emission testers. The affected Audi passenger cars include subcompacts to full-size limousines, which are identified as the A1, A3, A4, A5 and A6 lines. The TT sports car and the Q3 and Q5 sport utility vehicles were also affected, Audi reported.

As more information unfold regarding the VW scandal, its shares have been plummeting. With the company admitting that 11 million of its diesel-powered cars worldwide had been installed with pollution test-cheating “defeat device,” many Asian countries have initiated an investigation into Volkswagen diesel cars.

This move could reportedly result in the recall of 11 million cars already sold by the brand and affect as many as 180,000 unsold or non-registered cars in the Euro 5 emission category. While the wider car market has also been affected by the crisis, with people becoming apprehensive of buying diesel-powered cars, regulators and prosecutors across the globe are investigating into the scandal.

According to Reuters, many regulators in the U.S. and Europe have spoken about taking stern actions against companies that fail to comply with pollution standards.

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