Angela Merkel makes a spirited warning over the German car industry in remarks to her CDU Party faithful, but prosecutors confirm raids on VW's headquarters while Australia joins the list of countries planning a vehicle recall. David Pollard reports.
German leaders may have their different preferences when it comes to choosing limousines. One thing they do have in common though is a love of the German car industry. Something Angela Merkel told her CDU Party faithful she - and her party - must defend. (SOUNDBITE) (German) GERMAN CHANCELLOR ANGELA MERKEL, SAYING: "Anyone who tries to pillory the entire automobile industry because of misconduct in one area will have to deal with the CDU. Because many jobs are connected to that." The German chancellor's warning was, no doubt, not intended to hold back state prosecutors. One of whom confirmed that VW's Wolfsburg headquarters premises were raided on Thursday. Over 50 officials searched for evidence of what he described as "possibly criminal acts''. Outside of Germany, an apology to the US Congress by VW's US chief has been followed by news from VW Australia. It's to recall all vehicles with emissions cheating devices there. Around 100,00 cars could be affected. As the list of recalls grows, Richard Hunter of Hargreaves Lansdown says the extent of VW's problems is only just becoming visible. (SOUNDBITE) (English) RICHARD HUNTER, HEAD OF EQUITIES, HARGREAVES LANSDOWN SAYING: ''If you imagine that the BP oil spill has taken 5 years to get to where we are today, and only now is there light at the end of the tunnel, this is clearly something that could hang over VW for some considerable time to come.'' VW has warned it will be forced to make massive cost savings to deal with the crisis. Today though, Spain confirmed it's been given a reassurance that a 4.2 billion euro investment by VW is safe. For the carmaker's 22,000 workers there, a rare note of optimism in a crisis that could has a lot of mileage to go.