The federal government wants urgent clarification from Volkswagen Australia and Audi Australia on whether local vehicles were fitted with devices to fudge their emitted pollution.
Amid the global saga, in which 11 million diesel cars were fitted with the devices that make them perform better in emissions testing than on the road, the government is demanding to know if 50,000 local cars are involved.
Minister for Local Government Paul Fletcher said in a statement he expected advice from the car manufacturers shortly and would then determine if a recall of vehicles was necessary.
"Volkswagen Group Australia is still awaiting details with regards to our market and specifically which models may be affected," the local branch of the car maker said in a statement.
Aussie consumers consider class action
Leading class action law firm Maurice Blackburn has announced an investigation into a potential consumer law case against Volkswagen amid its global pollution rigging scandal.
It has not been confirmed whether any cars on the Australian market are among the 11 million vehicles Volkswagen says carry the emissions-hiding software.
But the firm's class action principal Damian Scattini believes it is likely to affect Australian car owners, and consumers may have grounds to take action against the German carmaker.
Volkswagen turns to Porsche boss to steer it out of crisis
Volkswagen will name Matthias Mueller, the head of its Porsche sports car brand, as its chief executive, a source close to the matter said on Thursday, as the fallout from the U.S. vehicle emissions test rigging scandal broadened.
Mueller, 62, has been widely tipped to succeed Martin Winterkorn, who quit on Wednesday, when the German carmaker's supervisory board meets on Friday. He will take responsibility for steering Volkswagen through the biggest business crisis in its 78-year history.
The crisis deepened on Thursday as officials in Europe and the United States stepped up their investigations.
Germany's transport minister said Volkswagen had manipulated tests in Europe too.
"We have been informed that also in Europe, vehicles with 1.6 and 2.0 liter diesel engines are affected by the manipulations that are being talked about," Alexander Dobrindt told reporters, adding it was unclear how many vehicles in Europe were affected.
Dobrindt said Europe would agree on new emissions tests in coming months that should take place on roads, rather than in laboratories, and that random checks would be made on all manufacturers.
Fury over deception
Separately, a group of at least 27 US state attorneys general launched a multi-state investigation of Volkswagen's representations to consumers about its diesel vehicles, and said it will send subpoenas to the automaker.
“I am furious that the world’s leading car company wilfully took steps that polluted our environment and deceived consumers,” Maryland Attorney General Brian Frosh said in a statement.
In Sacramento, California, that state's top air quality regulator said her agency is preparing a series of actions against Volkswagen in response to the company's admission that it cheated on tailpipe pollution tests. "Right now we are organizing ourselves for a major enforcement action," said Mary Nichols, head of the California Air Resources Board.
The state also intends to order a recall of Volkswagen diesel vehicles sold in the state with software that enabled the cars to pass the agency's emissions tests, but then emit far more pollution on the road.
Volkswagen has said 11 million cars globally had the software fitted, but it was not activated in the bulk of them. As well as the cost of regulatory fines and potentially refitting cars, Volkswagen faces criminal investigations and lawsuits from cheated customers and possibly shareholders.