The full implications of the VW emissions scandal are ramping up as the company’s American boss faced angry recriminations at the US Congress.

Some very colourful allegations hurled by congressmen at US boss Michael Horn. Democrat Peter Walsh said Volkswagen was "the Lance Armstrong of automakers," and asked Mr Horn how he could sleep at night knowing he "knowingly poisoned the planet"

He added that this scandal is on the same scale as Enron.

Mr Horn stuck to the line that the decision to use the emissions-cheating software was one taken by a small number of engineers though he acknowledged that he would have found that hard to believe himself.

The State of Texas has launched a lawsuit against Volkswagen claiming the company violated the State’s Deceptive Trade practices

Credit Suisse analysts say that in a worst case scenario the cost of the controversy could be an high as €78bn.

German police and public prosecutors raided the motor company’s headquarters in Wolfsburg yesterday. 

Officials said they were targeting information relating to the creation of the company's diesel engine software - designed to cheat emissions-testing.

In a statement announcing the raids, the prosecutors said the aim of the searches was to "secure documents and data storage devices" that could identify those involved.