 "Volkswagen head resigns amid emission scandal")
Martin Winterkorn resigned as chief executive officer (CEO) of Volkswagen on Wednesday, taking responsibility for an emissions cheating scandal that has gravely damaged the carmaker's reputation and might spread to the German economy. "As CEO, I accept responsibility for the irregularities that have been found in diesel engines," Winterkorn, who had headed the company since 2007, said in a statement.
But he continued to insist that he, personally, had committed no misconduct. "I am not aware of any wrongdoing on my part," he said.
Volkswagen shares, which had been up on Wednesday after two days of steep declines, remained three per cent higher on the news, late in the day, in Germany. But they were still about 30 per cent below the closing price in Frankfurt on Friday, before news of the scandal broke.
Winterkorn's resignation came less than a week after the company admitted that some diesel cars in the United States contained software designed to evade emissions tests. On Tuesday, Volkswagen said that 11 million cars worldwide contained the software, although the company did not clarify whether it was also used to deceive regulators in other countries.
Separately, representatives of Volkswagen's supervisory board said they would refer the case to German prosecutors for possible criminal prosecution. But they also said they did not believe that Winterkorn had any knowledge of the manipulation. A steering committee of the supervisory board did not immediately name a successor. Speculation has focused on Matthias Müller, who is in charge of the Volkswagen division that makes Porsche sports cars.
Winterkorn's resignation came after a day-long meeting of the steering committee, known as the presidium, which includes the company's main shareholders. "In the view of the presidium, irregularities occurred which could be relevant under criminal law," the presidium said in a statement. It said Volkswagen would cooperate fully with any investigation.
"The members of the presidium have determined that Winterkorn had no knowledge of manipulation of emission values," the group said.
In Germany, even before word of Winterkorn's resignation, there was growing concern on Wednesday that the scandal could damage the country's economy, which revolves around the auto industry. Volkswagen is one of the country's biggest companies, employing 274,000 people in Germany at 29 factories, and it is already struggling with high labour costs. That figure does not count the tens of thousands of people employed in Germany by Volkswagen suppliers.
The German Engineering Federation, which represents machinery makers and is closely intertwined with the auto industry, said there was a risk that the Made in Germany brand could suffer. The organisation said in a statement that it was worried "that one instance of misconduct could be carried over to all of German industry."
But he continued to insist that he, personally, had committed no misconduct. "I am not aware of any wrongdoing on my part," he said.
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Volkswagen shares, which had been up on Wednesday after two days of steep declines, remained three per cent higher on the news, late in the day, in Germany. But they were still about 30 per cent below the closing price in Frankfurt on Friday, before news of the scandal broke.
Winterkorn's resignation came less than a week after the company admitted that some diesel cars in the United States contained software designed to evade emissions tests. On Tuesday, Volkswagen said that 11 million cars worldwide contained the software, although the company did not clarify whether it was also used to deceive regulators in other countries.
Separately, representatives of Volkswagen's supervisory board said they would refer the case to German prosecutors for possible criminal prosecution. But they also said they did not believe that Winterkorn had any knowledge of the manipulation. A steering committee of the supervisory board did not immediately name a successor. Speculation has focused on Matthias Müller, who is in charge of the Volkswagen division that makes Porsche sports cars.
Winterkorn's resignation came after a day-long meeting of the steering committee, known as the presidium, which includes the company's main shareholders. "In the view of the presidium, irregularities occurred which could be relevant under criminal law," the presidium said in a statement. It said Volkswagen would cooperate fully with any investigation.
"The members of the presidium have determined that Winterkorn had no knowledge of manipulation of emission values," the group said.
In Germany, even before word of Winterkorn's resignation, there was growing concern on Wednesday that the scandal could damage the country's economy, which revolves around the auto industry. Volkswagen is one of the country's biggest companies, employing 274,000 people in Germany at 29 factories, and it is already struggling with high labour costs. That figure does not count the tens of thousands of people employed in Germany by Volkswagen suppliers.
The German Engineering Federation, which represents machinery makers and is closely intertwined with the auto industry, said there was a risk that the Made in Germany brand could suffer. The organisation said in a statement that it was worried "that one instance of misconduct could be carried over to all of German industry."
@The New York Times