Lopez to back out of VW?

FEARS are growing in Germany that Ignacio Lopez, the production director of Volkswagen, may have to resign in the next few days because of the controversy surrounding his move to the company from General Motors.

A statement last week from the Darmstadt prosecutors' office investigating allegations of industrial espionage showed that a link had been found between Mr Lopez and secret GM documents found in a flat in Wiesbaden.

There is also concern over the position of Ferdinand Piech, the VW chairman who hired Mr Lopez and has resolutely defended him during the controversy. VW's share price continued to fall, closing DM3.2 ( pounds 1.30) down at DM345.