A group of Holocaust survivors in the United States have filed suits against some of Germany's best-known companies -- including the car manufacturers Volkswagen and Daimler-Benz.

Lawyers acting for the group say the companies profited from the work of more than two-million slave labourers during the Nazi era.

Volkswagen says it will create a fund to compensate those who were forced to work in its factories.

The BBC Europe Business Correspondent says an eventual deal could mean the pay-out of hundreds of millions of dollars.

The legal action follows a similar suit against two of Germany's leading banks.