Volkswagen sales temporarily banned in Switzerland

Switzerland has temporarily banned the sale of German car giant Volkswagen's (VW) diesel-engine models which could have devices capable of manipulating emission tests, the media reported on Saturday.

The ban was announced by the Swiss Federal Roads office on Friday, BBC reported.

In a statement, the office said vehicles that have 1.2-litre 1.6-litre and 2.0-litre diesel engines of VW models - including VW's Audi, Seat and Skoda brands - could be affected.

However, the ban does not apply to vehicles that are already in circulation or cars with Euro6 emission category engines.

The Swiss authorities have also set up a taskforce to fully investigate the issue.

The announcement came after the emission scandal began unfolding last week when the car giant said it had used software in the US to provide false emission test results. On Thursday, the German government was informed that Volkswagen also cheated in in emission tests of its diesel vehicles in Europe as it did in the US.

VW shares plunged around 30 percent in the days after the scandal broke. Transport authorities in several countries - including the UK and Germany - have announced their own investigations.

Meanwhile, chairman of Porsche AG Matthias Mueller has been named new VW chief executive in the wake of the scandal. He succeeds Martin Winterkorn, who resigned on Wednesday.

After his appointment, Mueller said restoring the company's reputation was his top priority.

"My most urgent task is to win back trust for the Volkswagen Group - by leaving no stone unturned and with maximum transparency, as well as drawing the right conclusions from the current situation."