The first victim of the Volkswagen’s diesel emission cheating scandal is Mr. Martin Winterkorn, the CEO of the company. He has decided to step down from his office in the wake of the diesel emission scandal that has hit the company very badly.
Volkswagen has been found guilty of using software to reduce the pollution of the diesel engines that it has let out in the market. The diesel cars would abide by the regulation set in the United States for the diesel emission by the use of the software during testing. As many as 11 million diesel cars of different Volkswagen brands are said to be recalled because of the cheating employed during emission tests.
The CEO of Volkswagen said that the company needs a fresh start, both in terms of technology and in terms of personnel. He said that he is clearing the way so that fresh minds are brought into the force. Winterkorn had a very long meeting with the Volkswagen executive committee before stepping down from his office.
The world’s largest car manufacturer and German automaker, Volkswagen Group, had admitted to the U.S. regulators that they had used a program in the car to detect when the diesel cars were tested and would alter the diesel engine running in such a manner that it morphed its true emission levels.
Volkswagen has accepted the resignation of Mr. Winterkorn, but they have not yet disclosed as to who the new CEO will be. The proposals for the appointment of the CEO will be made to a full board meeting that is to be held on Friday.
As Porsche and Audi are the popular luxury brands of the Volkswagen group, it is believed that either the Porsche chief Matthias Mueller or Audi chief Rupert Stadler be replacing Winterkorn as the Volkswagen CEO. Another front runner for the VW CEO post is the head of the Volkswagen brand, Herbert Diess.
The outgoing Volkswagen CEO had been in charge for 8 years and was responsible for doubling the Volkswagen sales. He was also responsible for tripling the profit earned by Volkswagen. The car maker is running helter skelter to take a decisive decision after this diesel engine scandal. The shares of the company have plummeted by 30% in value after this crisis has broken.
The German Chancellor Angela Merkel has asked the Volkswagen group to act in a swift manner to restore the confidence in the company. The U.S. Environmental Protection Agency said that Volkswagen could face penalties to the tune of $18 billion for the diesel scandal.