VW says 800,000 cars may have false CO2 levels

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German car maker Volkswagen said it has found irregularities in carbon dioxide emission levels which could affect around 800,000 cars in Europe.

The car maker said that the problem which it came across while investing diesel emission, could cost about €2bn (£1.4bn).

Brands including VW, Audi, Skoda and Seat could be affected, a VW spokesman told media.

The issue mainly affects diesels, but could also include petrol models.

The problem lies in the way certain car types with “smaller engines” were certified to meet carbon dioxide emissions standards, the spokesman added.