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Former VW employee under investigation for corporate espionage found dead in burned-out car

FILE - In this file photo dated Thursday, April 23, 2020, flags wave in front of a factory building during the production restart of the plant of the German manufacturer Volkswagen AG (VW) in Zwickau, Germany. Carmaker Volkswagen reports Thursday July 30, 2020, an after-tax loss of 1.54 billion euros (dollars 1.81 billion) in the second quarter as the pandemic shut down auto plants and closed dealerships. (AP Photo/Jens Meyer, FILE) -  Jens Meyer/AP

A former Volkswagen employee accused of corporate espionage has been found dead in a burnt out car.

The dead man, named only as Christian M under German privacy laws, was under police investigation on suspicion of breaching commercial secrets.

He was under investigation in connection with an alleged illegal wiretapping incident in which internal discussions over a commercial dispute with a Bosnian-owned parts supplier were leaked.

Christian M’s body was found in the wreckage of a car on a dirt road in a village near Hamburg earlier this week, so badly burned it was initially unrecognisable. Police stressed there was no evidence of foul play.

He was previously the victim of an arson attack when his home was set alight in May this year. Shortly before his death prosecutors announced they were investigating whether the arson incident was linked to the wiretapping affair.

(FILES) This file photo taken on February 28, 2020 shows the power plant at the headquarters of German car maker Volkswagen (VW) in Wolfsburg, Germany. - German carmaker Volkswagen on Thursday, July 30, 2020 reported a pre-tax loss of 1.4 billion euros ($1.6 billion) for the first half of 2020 after the coronavirus pandemic sent sales plummeting. (Photo by Ronny Hartmann / AFP) (Photo by RONNY HARTMANN/AFP via Getty Images)  -  RONNY HARTMANN/AFP

The wiretapping allegations emerged in connection with a long-running commercial dispute between VW and the Prevent Group, a Bosnian-owned company that supplied the German carmaker with a range of parts including gearbox components and seatcovers.

In 2016 production at VW was interrupted when Prevent suddenly cut supplies in a dispute over cancelled orders, allegedly costing the German carmaker millions. VW subsequently cut all ties with the supplier in 2018. But allegations have since emerged that an insider at VW leaked recordings of internal discussions about the dispute — in what VW has claimed amounted to “an illegal wiretapping attack”.

VW declined to comment on the circumstances surrounding his death. “Volkswagen does not have any confirmed information. As before, we do not comment on the proceedings against the released employee, but refer to the ongoing investigations by the Braunschweig public prosecutor,” the company said in a statement.

The Prevent Group has denied any knowledge of or involvement in the alleged recordings, and says it is considering legal steps to protect its reputation.