Germany to set up new emissions testing body after VW scandal

BERLIN, June 27 (Reuters) - The German transport ministry announced plans on Tuesday to set up a new institute to test vehicle emissions to restore consumer confidence after the Volkswagen scandal as it said two models had produced more carbon dioxide than allowed.

The ministry said an Opel Zafira car and a Smart For Two produced by Daimler - both discontinued - had produced more carbon dioxide than they should, although the Smart model still needs to undergo further tests.

The ministry ordered tests of 29 models as a result of the Volkswagen emissions scandal. Ten models still need to be tested in the coming months while 17 passed the test.

After Germany’s current emissions testing agency came under fire for being too close to the auto industry, the ministry said it will found a new institute involving the auto industry, ministries, consumer organisations and environmental groups. (Reporting by Markus Wacket, Writing by Emma Thomasson; Editing by Madeline Chambers)