German prosecutors in Braunschweig said they had launched a second formal probe related to the emissions scandal at Volkswagen (VOWG_p.DE), focusing on five VW employees in connection with suspected tax evasion.

The prosecution is examining whether owners of Volkswagen vehicles for which carbon dioxide emissions were understated paid too little automotive tax, a spokesman for the prosecutor's office said, confirming an earlier report.

The damage caused by the tax evasion is "not small", he said. The main focus of the investigation is tax evasion, but it could also involve fraud, he added.