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Thursday, September 24, 2015

Volkswagen CEO Resigns Over Rigged Emissions Tests; Porsche CEO Takes Over [Report]

Volkswagen (VW) chief Martin Winterkorn has resigned amidst a growing scandal over falsified emissions tests. The company also owns Audi and Porsche making it the largest carmaker in the world. VW just recently overtook Toyota to achieve that mark, almost three years ahead of its target.

Winterkorn announced his resignation on Wednesday.

The German automaker has been brought under immense criticism after U.S. regulators said the company had deliberately programmed almost half a million diesel-powered vehicles to emit lower levels of harmful gases in official tests.

The resignation came after VW revealed it had found significant discrepancies in emissions in over 11 million diesel vehicles worldwide. Winterkorn said he was stunned by the scale of misconduct and accepted responsibility to clear the way for a "fresh start" for the company.

Stock prices have crashed since the emission test scandal came to light. Winterkorn had set aside $7.3 billion to cover recall costs to limit the damage. But the final bill could be much higher. The company is facing civil and even criminal fines in the U.S. which could easily reach into the billions of dollars.

VW has been ordered to recall affected vehicles and the automaker has stopped sales of certain models in some cases.

Read the full report on CNN Money. There is also a video.

The company has announced today that Porsche CEO Matthias Müller will be the designated CEO of the company going forward.

Source: CNN Money

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