11 million Volkswagen diesel vehicles affected by the emissions scandal. Image: Volkswagen Image: Volkswagen

Volkswagen says it will recall 8.5 million cars in Europe affected by the emissions scandal after it was ordered to recall 2.4 million in Germany by the country's automotive regulator.

According to reports in Germany, the German Federal Motor Transport Authority (KBA) rejected Volkswagen's request to allow customers to voluntarily return their vehicles affected by the emissions scandal.

The news comes as Italian police raided Volkswagen offices in Verona and Lamborghini, which is owned by the German car manufacturer, offices in Bologna. It is understood to be investigating allegations of commercial fraud.

The scandal is set to cost Volkswagen an estimated $20 billion in fines, penalties, compensation and reduced investment, making it one of the costliest corporate scandals in history.

Last month 11 million Volkswagen vehicles were found to have been fitted with a so-called 'defeat device' which was used to cheat emissions tests.