Porsche Being Investigated For Committing Fraud And False Advertising

The fallout from the Dieselgate scandal continues as the Stuttgart prosecutor's office has revealed Porsche is being investigated for fraud and false advertising.

Reuters reports the investigation is tied to the company's use of diesel engines and prosecutor Jan Holzner said there are grounds to suspect Porsche employees may have committed fraud and false advertising by promoting the engines.

Porsche is reportedly cooperating with the investigation and the company said it initiated contact with prosecutors before the investigation was officially launched.

The prosecutor's office declined to go into specifics but the investigation appears to be centered on the 3.0-liter diesel engine that was used in the Porsche Cayenne. The engine was supplied by Audi which is facing a similar investigation by prosecutors in Munich.

While the investigation is still at an early stage, it could lead to some serious charges. Just last week, Audi employee Giovanni Pamio was arrested for fraud and false advertising for reportedly ordering employees to develop software to circumvent U.S. emission standards.

Last month, the Der Spiegel reported TUV Nord discovered the Cayenne produces excess emissions which "would not have been approved by the authorities." However, Porsche disputed those claims as “not comprehensible.”