Volkswagen CEO resigns following emissions scandal

Volkswagen CEO Martin Winterkorn has resigned from his role after the company was found to have deceived emission tests using a clever software in their diesel cars.

As per the U.S. Environmental Protection Agency (EPA), Volkswagen’s diesel cars are designed as such that they emit lower emissions during dyno tests than real life situations. As a result, they could face penalties to the extend of $18 billion for the 4,82,000, four-cylinder diesel VW and Audi cars sold in the US since 2009.

Similar investigations are likely to be carried in other parts of the world that could put a big dent in company’s bank balance. Around 11 million cars have been fitted with such engines.

World’s largest car maker has already set aside $7.3 billion to cover the anticipated costs. With shares plunging on the stock exchange, it has also lost billions of dollars in market value.

Although Winterkorn insists he was unaware of the scandal that happened under his nose, he has taken full responsibility for it. 

“I am shocked by the events of the past few days. Above all, I am stunned that misconduct on such a scale was possible in the Volkswagen Group," he said in a statement.

“As CEO I accept responsibility for the irregularities that have been found in diesel engines and have therefore requested the Supervisory Board to agree on terminating my function as CEO of the Volkswagen Group. I am doing this in the interests of the company even though I am not aware of any wrongdoing on my part.

“Volkswagen needs a fresh start – also in terms of personnel. I am clearing the way for this fresh start with my resignation,'' he added.

Winterkorn concluded by saying Volkswagen will emerge out of this 'grave crisis'. 

Also read: “We Screwed Up”, says Volkswagen US boss