VW Confession

On Tuesday, the spokesperson for the court in the northern Germany city of Braunschweig, Ingo Gross, said Volkert had made a "credible judicial confession" and "admitted to a large extent to the actions he is accused of."

Volkert has now been released. No formal charges have yet been brought against him, but Gross said the Braunschweig court considers Volkert a suspect on 33 counts of inciting breach of trust.

Prosecutor's believe that between 1994 and 2005, the 64-year old Volkert received so-called "special bonuses" worth nearly two million euros.

The payments were allegedly sanctioned by former VW board member Peter Hartz who was charged by prosecutors last month with 44 counts of breach of trust.

Lawyer says no new confession

Volkert's lawyer, Johann Schwenn said his client had only repeated the contents of earlier statements at the hearing. Schwenn also said it wasn't the facts about the payments that were under dispute, but rather the legal framework.

Volkert was arrested on Nov. 21 after prosecutors said he tried to coerce former VW personnel manager Klaus-Joachim Gebauer, who is another suspect in the case, to play down his statements before the court.

The investigation revolves around whether VW managers and members of its employee council received illegal kickbacks, including so-called pleasure trips for work council members so as to keep them on their side. This included allegations about flying around high-class prostitutes.

Meanwhile, on Monday, the Braunschweig court announced that Peter Hartz will go on trial on Jan. 17. Although 13 people are under investigation in the case, Hartz is the only one to have been charged.