Frankfurt, Sep 24 (Agencies): Volkswagen CEO Martin Winterkorn resigned on Wednesday, taking responsibility for the German carmaker’s rigging of the US emission tests.
“Volkswagen needs a fresh start, also in terms of personnel. I am clearing the way for this fresh start with my resignation,” said 68-year-old Winterkorn, who has been at the helm for eight years.
US authorities are planning criminal investigations after discovering that Volkswagen (VW) programmed computers in its cars to detect when they were being tested and alter the running of their diesel engines to conceal the true level of emissions. With the so-called “defeat device” deactivated, the car can spew pollutant gases into the air, including nitrogen oxide, in amounts as much as 40 times higher than emissions standards, said the US Environmental Protection Agency (EPA).
“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,” Winterkorn said. But he also said, “I am not aware of any wrongdoing on my part.”
Volkswagen shares, which lost over a third of their value on Monday and Tuesday, were trading 5.3 per cent higher at 111.65 € at 3:30 pm GMT.
Senior members of Volkswagen’s supervisory board said that they expected further heads to roll in the coming days as an internal probe seeks to identify who was responsible for what has turned into the biggest scandal in Volkswagen’s 78-year history.
Volkswagen said on Tuesday it was setting aside € 6.5 billion ($7.3 billion) to help cover the costs of the crisis, though analysts doubt that will be enough.
The EPA, which announced the allegations on Friday along with California state authorities, is conducting an investigation that could lead to more than $18 billion in fine.
The story has sent shockwaves through the car market, with dealers in the US reporting people holding back from buying diesel cars and #dieselgate trending on Twitter.
Private law firms are lining up to take on the German company, with a class action suit already being filed. VW halted all diesel vehicles sales in the US during the probe. While the scandal has been restricted to Volkswagen so far, environmental protection groups, particularly in Germany, suspect other car makers may be using similar technology.