By Friedrich Geiger 

BERLIN--German prosecutors have launched an investigation into possible tax evasion related to Volkswagen AG's emissions-cheating scandal, the latest in a growing list of official probes into alleged misconduct at the auto maker.

The prosecutors' office in Braunschweig said Tuesday that it was investigating five Volkswagen employees following the company's admission earlier this month that it may have understated carbon-dioxide and fuel-consumption data in about 800,000 Volkswagen vehicles.

Under German law, a company as a rule cannot be held liable for criminal wrongdoing. Instead, prosecutors have to investigate the individuals suspected of being responsible. The prosecutors' office didn't identify the suspects.

A Volkswagen spokesman said that "we are cooperating with the authorities" and that the company is in close contact with them.

Understating CO2 emissions wouldn't have had an impact on Volkswagen's tax bill, but owners of the cars involved would have paid lower motor-vehicle taxes in Germany than they should have, Braunschweig prosecutor Birgit Seel said. Volkswagen told European Union finance ministers this month that it would pay any additional taxes due on a number of cars affected by the cheating.

The global emissions scandal potentially could cost Volkswagen tens of billions of euros in fines and litigation, in addition to the expense of installing new software and hardware. In response, the company has curtailed capital expenditures and pledged to put nonessential projects on hold.

The crisis has widened since September, when Volkswagen admitted to installing software in around 11 million diesel-powered vehicles that let them sidestep nitrogen-oxides emissions standards. In early November, the company said its own tests revealed possible carbon-dioxide data discrepancies in a further 800,000 vehicles. Volkswagen told U.S. regulators last week that yet another 85,000 vehicles contain software considered illegal under U.S. law.

That latest batch involves a 3.0-liter engine developed by Audi, Volkswagen's premium car unit. Audi said it would revise and reinstall software in the engines for the group. The fix, affecting diesel vehicles sold in the U.S. from 2009 onward, will cost "a mid-double-digit million euro" sum, Audi said late Monday.

Volkswagen itself has launched an internal investigation to identify those responsible for manipulating emissions testing at the company and instituted a whistleblower program asking employees to share information to uncover the culprits.

Chief Executive Matthias Müller said Monday that the company plans to give an update on its own investigation of the emissions scandal in mid-December but that it will take several more months until it will be able to present final findings.

Mr. Müller also said he expected the costs for refitting the cars would be "technically, mechanically and financially manageable."

The investigation announced Tuesday is separate from the one related to the initial September admission regarding the emissions evasion.

Ulrike Dauer in Frankfurt contributed to this article.

Write to Friedrich Geiger at friedrich.geiger@wsj.com

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(END) Dow Jones Newswires

November 24, 2015 13:29 ET (18:29 GMT)