Volkswagen's chief executive has apologised for making a joke about the Nazi "Arbeit macht frei" slogan.

Herbert Diess said "Ebit macht frei" - a reference to ""earnings before interest and taxes" at a company event on Tuesday.

He apologised on Friday, saying it was "definitely an unfortunate choice of words".

He added: "If I have unintentionally caused offence, I am extremely sorry. I would like to apologise unreservedly.

"At no time was it my intention for this statement to be placed in a false context. At the time, I simply did not think of this possibility."

The phrase Arbeit Macht Frei - "work makes you free" - appeared on the gates of many concentration camps and has become inseperable from the Third Reich, though the Nazis did not actually coin it themselves.

Volkswagen was founded by the Nazi Government in 1937. The company used slave labour during the Holocaust to build vehicles for the German military.

Mr Diess' apology acknowledged his company's "special responsibility in connection with the Third Reich".