Volkswagen's diesel emissions scandal has stalled the 600 million euro ($666 mln) sale of Turkish parts supplier Teklas Kaucuk, three sources with knowledge of the process told Reuters.

Two foreign bidders - US-based Cooper-Standard Automotive and a consortium of investment firms Oaktree Capital Group and Turkey's Esas Holding - have pulled out to assess the impact of the scandal on Teklas' sales, the sources said.

"Teklas is a great firm with annual ebitda of 75 million euros. Including the cash in its coffers, the sale value was estimated at over 600 million euros," one of the sources said, adding the bidders now wanted a lower price due to the scandal.

"Investors have gone into 'wait and see' mode. The process has stalled for now as the bidders wanted to reflect VW's problems in the pricing," the source said.

Neither Cooper-Standard, a subsidiary of Cooper-Standard Holdings, Oaktree, or Esas could immediately be reached for comment.

Teklas board member Raul Danon confirmed that bids from two foreign investors had fallen through, but said Teklas and its advisors had rejected them because they were too low and said he was not aware of any impact from the VW scandal.

"Our company is constantly in focus from foreign investors. Recently two foreign investors submitted bids which we directed to our advisor. Both were rejected since they were not interesting," he told Reuters.

Investment bank Is Yatirim Menkul Degerler is advising Teklas.

VW admitted on September 18 that it used illegal software to manipulate emissions tests on diesel vehicles in the United States.

About 30 per cent of Teklas' annual 255 million euro sales are to VW, the sources said. The privately-owned company also produces parts for General Motors, Daimler, BMW and Toyota, among others.-Reuters