German Chancellor Angela Merkel has said that the Volkswagen emissions scandal will not damage Germany's reputation as a good place to do business.

"It is of course a dramatic event which is not good," Merkel said. "But I think the reputation of German industry is not so shaken that we are no longer considered a good place to do business."

She also reiterated, in a series of interviews over the weekend, that she hoped Volkswagen would quickly create transparency and sort things out.

"As for Volkswagen, given the current difficult situation it is essential to ensure absolute transparency and a full and complete investigation of the entire matter,” said Merkel in comments sent to just-auto by her office in Berlin.

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