Germany approves scandal-hit VW's recall plan for 2.0-litre cars

German authorities on Wednesday gave the green light to a plan by scandal-hit Volkswagen to recall thousands of vehicles fitted with devices designed to cheat pollution tests.

The Federal Transport Authority said Volkswagen can "now start recalling and refitting" 2.0-litre Amarok models hit by the scandal.

It added that it was still examining VW's proposals for other models.

VW slumped into a scandal of global proportions after it admitted in September that it had fitted 11 million diesel engines worldwide with devices aimed at cheating emissions tests.

It is under investigation in several countries including the United States where authorities first uncovered the scam and have now filed a lawsuit against VW.

US authorities have also rejected VW's first proposals to fix affected 2.0 litre cars.

Besides facing billions in potential fines, the scandal has also hit VW's shares hard -- wiping out nearly 40 percent in market capitalisation since September even if they have come off their lows since then.