Shares in auto giant Volkswagen rebounded strongly in late morning trading on the Frankfurt stock exchange on Wednesday, bouncing back by more than 4.0 percent from the heavy losses seen over the past two days.

After briefly shooting up by more than 4.0 percent, the share was showing a gain of 2.08 percent at 108.50 euros at 0905 GMT, as investors sought cheap bargains following the unprecedented losses in the wake of the pollution cheating scandal.