In a statement issued by the company Winterkorn said he was "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."
A successor will determined at Friday's supervisory board meeting. However, rumors earlier suggested he might be replaced by Porsche President and CEO Matthias Muller, Audi chief Rupert Stadler and VW brand head Herbert Diess, although Volkswagen has denied this.
More people can be expected to follow Winterkorn out of the carmaker due to the scandal, a senior VW source who wished to remain anonymous due the sensitivity of the situation, told CNBC.
The world's second-largest carmaker is being engulfed by an emissions scandal which has wiped nearly 26 billion euros ($29 billion) off its market value this week. In this kind of situation, with 11 million cars potentially affected, jobs are put in jeopardy and even once-mighty companies can be permanently damaged.
The speed at which VW moved to clean the slate—five days—stands in marked contrast to the sometimes protracted recalls of other automakers.Toyota, for example, took several years over its recalls.
Volkswagen is said to have been caught cheating on U.S. air pollution tests. VW installed sophisticated software known as "defeat devices" in the electronic control module of diesel vehicles issued between 2008 and 2015.
Getty Images
Volkswagen CEO Martin Winterkorn.
Winterkorn has become the public face of the scandal, with
allegations that he ignored warning signs about the emissions in 2014.
In a video on the carmaker's website Tuesday, he admitted, "I do not
have all the answers to the questions but we are working hard to find
out exactly what happened."
In stepping down Wednesday, Winterkorn
said he was "not aware of any wrongdoing on my part" but had accepted
the "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."
What's unclear is whether Winterkorn knew about the installation of the defeat devices that allowed the cars to pass official environmental tests. Investors may find it unforgivable if he condoned or ordered their use—but it could be just as problematic if he did not know the devices were installed, as this would suggest a lack of oversight.
The embattled CEO seemed to have clinched a two-year contract extension earlier this year after a leadership battle with longstanding Chairman Ferdinand Piech, who all but publicly criticized the Winterkorn's performance. But Winterkorn won over shareholder support and the showdown saw Piech resign in April.
What's unclear is whether Winterkorn knew about the installation of the defeat devices that allowed the cars to pass official environmental tests. Investors may find it unforgivable if he condoned or ordered their use—but it could be just as problematic if he did not know the devices were installed, as this would suggest a lack of oversight.
The embattled CEO seemed to have clinched a two-year contract extension earlier this year after a leadership battle with longstanding Chairman Ferdinand Piech, who all but publicly criticized the Winterkorn's performance. But Winterkorn won over shareholder support and the showdown saw Piech resign in April.
Winterkorn spent eight years at the helm of Volkswagen,
but started his auto career in 1981 at Audi, serving on the board for
quality assurance after an engineering stint with Bosch. He joined
Volkswagen in the early 1990s in a similar quality-monitoring role,
before working in product management, technical development and research
roles.
"I have always been driven by my desire to serve this company, especially our customers and employees. Volkswagen has been, is and will always be my life," Winterkorn said Wednesday.
"The process of clarification and transparency must continue. This is the only way to win back trust. I am convinced that the Volkswagen Group and its team will overcome this grave crisis."
After the scandal erupted, shares tanked 18 percent Monday and nearly 20 percent Tuesday. However on Wednesday they pared some losses to trade around 6 percent higher.
"I have always been driven by my desire to serve this company, especially our customers and employees. Volkswagen has been, is and will always be my life," Winterkorn said Wednesday.
"The process of clarification and transparency must continue. This is the only way to win back trust. I am convinced that the Volkswagen Group and its team will overcome this grave crisis."
After the scandal erupted, shares tanked 18 percent Monday and nearly 20 percent Tuesday. However on Wednesday they pared some losses to trade around 6 percent higher.
Volkswagen has faced other challenges under the CEO's
watch, with the most recent sales numbers showing a 1.5 percent drop in
vehicle deliveries in the first eight months of 2015 compared to a year
earlier and a 5.4 percent year-on-year fall in August alone.
It seems Winterkorn's departure could help
provide a clean slate not only for Volkswagen, but for Winterkorn
himself, an executive headhunter told CNBC.
Jason Hanold, manager partner of Hanold Associates, which has hired senior leaders for Rolls-Royce, Bridgestone and Harley Davidson, said Winterkorn has a chance to wield his expertise outside the auto sector.
"Private equity and advisory firms would be an exceptional avenue, as his operational and industry knowledge is distinctive, even though his followership will clearly suffer," Hanold said.
As for the future of diesel vehicles, the German auto industry association chief told Reuters that the Volkswagen scandal shouldn't be used as an excuse to question their future.
Cr : CNBC
Jason Hanold, manager partner of Hanold Associates, which has hired senior leaders for Rolls-Royce, Bridgestone and Harley Davidson, said Winterkorn has a chance to wield his expertise outside the auto sector.
"Private equity and advisory firms would be an exceptional avenue, as his operational and industry knowledge is distinctive, even though his followership will clearly suffer," Hanold said.
As for the future of diesel vehicles, the German auto industry association chief told Reuters that the Volkswagen scandal shouldn't be used as an excuse to question their future.
Cr : CNBC
BERLIN: Volkswagen CEO
Martin Winterkorn resigned on Wednesday, taking responsibility for the
German carmaker’s rigging of U.S. emissions tests in the biggest scandal
in its 78-year history.
“Volkswagen needs a fresh start - also in terms of personnel. I am
clearing the way for this fresh start with my resignation,” Winterkorn
said in a statement.
He said he was shocked by events of the past few days, above all that
misconduct on such a massive scale was possible at the company.
A five-member executive committee had grilled Winterkorn, 68, since
morning at the company’s headquarters in Wolfsburg, Germany. The company
was under huge pressure to take decisive action, with its shares down
more than 30 percent in value since the crisis broke, and the bad news
still coming.
German prosecutors said on Wednesday they were conducting a preliminary
investigation into the manipulation of vehicle emission test results at
Volkswagen, while French Energy Minister Segolene Royal said her country
would be “extremely severe” if its investigation into the firm found
any wrongdoing.
U.S. authorities are planning criminal investigations after discovering
that Volkswagen programmed computers in its cars to detect when they
were being tested and alter the running of their diesel engines to
conceal their true emissions.
German Chancellor Angela Merkel had urged Volkswagen to move “as quickly
as possible” to restore confidence in a company held up for generations
as a paragon of German engineering prowess.
SHOCKWAVES
The U.S. Environmental Protection Agency (EPA) said on Friday Volkswagen
could face penalties of up to $18 billion for cheating emissions tests
on some of its diesel cars.
The story has sent shockwaves through the car market, with dealers in
the United States reporting people holding back from buying diesel cars
and “#dieselgate” trending on Twitter.
Diesel engines account for less than 3 percent of new cars sold in the
United States but around half of cars in Europe, where governments have
encouraged their use to meet fuel efficiency and greenhouse gas targets.
Their biggest selling point is their fuel economy and low carbon
emissions compared to standard gasoline engines. But they also emit far
more nitrogen dioxide, a toxic gas blamed for health problems. The
suggestion that their emissions in real world conditions are worse than
reported in tests could harm the whole sector and alter the future of
the car industry worldwide.
“The Volkswagen issue is another blackeye for the diesel engine
overall,” Mike Jackson, the chief executive of the AutoNation, the
largest U.S. car retailer, told CNBC, adding the “brand position” of
Volkswagen was at risk in the U.S. market.
Volkswagen said on Tuesday it was setting aside 6.5 billion euros ($7.3
billion) to help cover the costs of the crisis.
Analysts doubt that will be enough, with the company disclosing that 11
million of its cars were fitted with Type EA 189 engines that had shown a
“noticeable deviation” in emission levels between testing and road use.
The U.S. Justice Department has launched a criminal probe, a source
familiar with the matter said. New York and other state attorneys
general are also forming a group to investigate.
“INVESTOR’S NIGHTMARE“
Environmentalists have long complained that carmakers game the testing
regime to exaggerate the fuel-efficiency and emissions readings of their
vehicles. European politicians on Wednesday voted to speed up rules to
tighten compliance with pollution limits on cars.
European car association ACEA said that so far there was “no evidence
that this is an industry-wide issue.”
But Societe Generale analysts said that while the uncertainty prevailed,
the whole autos sector was likely to be “dead money” for a while.
-Reuters
Read More : http://www.nst.com.my/news/2015/09/volkswagen-boss-quits-over-diesel-scandal
Read More : http://www.nst.com.my/news/2015/09/volkswagen-boss-quits-over-diesel-scandal
BERLIN: Volkswagen CEO
Martin Winterkorn resigned on Wednesday, taking responsibility for the
German carmaker’s rigging of U.S. emissions tests in the biggest scandal
in its 78-year history.
“Volkswagen needs a fresh start - also in terms of personnel. I am
clearing the way for this fresh start with my resignation,” Winterkorn
said in a statement.
He said he was shocked by events of the past few days, above all that
misconduct on such a massive scale was possible at the company.
A five-member executive committee had grilled Winterkorn, 68, since
morning at the company’s headquarters in Wolfsburg, Germany. The company
was under huge pressure to take decisive action, with its shares down
more than 30 percent in value since the crisis broke, and the bad news
still coming.
German prosecutors said on Wednesday they were conducting a preliminary
investigation into the manipulation of vehicle emission test results at
Volkswagen, while French Energy Minister Segolene Royal said her country
would be “extremely severe” if its investigation into the firm found
any wrongdoing.
U.S. authorities are planning criminal investigations after discovering
that Volkswagen programmed computers in its cars to detect when they
were being tested and alter the running of their diesel engines to
conceal their true emissions.
German Chancellor Angela Merkel had urged Volkswagen to move “as quickly
as possible” to restore confidence in a company held up for generations
as a paragon of German engineering prowess.
SHOCKWAVES
The U.S. Environmental Protection Agency (EPA) said on Friday Volkswagen
could face penalties of up to $18 billion for cheating emissions tests
on some of its diesel cars.
The story has sent shockwaves through the car market, with dealers in
the United States reporting people holding back from buying diesel cars
and “#dieselgate” trending on Twitter.
Diesel engines account for less than 3 percent of new cars sold in the
United States but around half of cars in Europe, where governments have
encouraged their use to meet fuel efficiency and greenhouse gas targets.
Their biggest selling point is their fuel economy and low carbon
emissions compared to standard gasoline engines. But they also emit far
more nitrogen dioxide, a toxic gas blamed for health problems. The
suggestion that their emissions in real world conditions are worse than
reported in tests could harm the whole sector and alter the future of
the car industry worldwide.
“The Volkswagen issue is another blackeye for the diesel engine
overall,” Mike Jackson, the chief executive of the AutoNation, the
largest U.S. car retailer, told CNBC, adding the “brand position” of
Volkswagen was at risk in the U.S. market.
Volkswagen said on Tuesday it was setting aside 6.5 billion euros ($7.3
billion) to help cover the costs of the crisis.
Analysts doubt that will be enough, with the company disclosing that 11
million of its cars were fitted with Type EA 189 engines that had shown a
“noticeable deviation” in emission levels between testing and road use.
The U.S. Justice Department has launched a criminal probe, a source
familiar with the matter said. New York and other state attorneys
general are also forming a group to investigate.
“INVESTOR’S NIGHTMARE“
Environmentalists have long complained that carmakers game the testing
regime to exaggerate the fuel-efficiency and emissions readings of their
vehicles. European politicians on Wednesday voted to speed up rules to
tighten compliance with pollution limits on cars.
European car association ACEA said that so far there was “no evidence
that this is an industry-wide issue.”
But Societe Generale analysts said that while the uncertainty prevailed,
the whole autos sector was likely to be “dead money” for a while.
-Reuters
Read More : http://www.nst.com.my/news/2015/09/volkswagen-boss-quits-over-diesel-scandal
Read More : http://www.nst.com.my/news/2015/09/volkswagen-boss-quits-over-diesel-scandal
BERLIN: Volkswagen CEO
Martin Winterkorn resigned on Wednesday, taking responsibility for the
German carmaker’s rigging of U.S. emissions tests in the biggest scandal
in its 78-year history.
“Volkswagen needs a fresh start - also in terms of personnel. I am
clearing the way for this fresh start with my resignation,” Winterkorn
said in a statement.
He said he was shocked by events of the past few days, above all that
misconduct on such a massive scale was possible at the company.
A five-member executive committee had grilled Winterkorn, 68, since
morning at the company’s headquarters in Wolfsburg, Germany. The company
was under huge pressure to take decisive action, with its shares down
more than 30 percent in value since the crisis broke, and the bad news
still coming.
German prosecutors said on Wednesday they were conducting a preliminary
investigation into the manipulation of vehicle emission test results at
Volkswagen, while French Energy Minister Segolene Royal said her country
would be “extremely severe” if its investigation into the firm found
any wrongdoing.
U.S. authorities are planning criminal investigations after discovering
that Volkswagen programmed computers in its cars to detect when they
were being tested and alter the running of their diesel engines to
conceal their true emissions.
German Chancellor Angela Merkel had urged Volkswagen to move “as quickly
as possible” to restore confidence in a company held up for generations
as a paragon of German engineering prowess.
SHOCKWAVES
The U.S. Environmental Protection Agency (EPA) said on Friday Volkswagen
could face penalties of up to $18 billion for cheating emissions tests
on some of its diesel cars.
The story has sent shockwaves through the car market, with dealers in
the United States reporting people holding back from buying diesel cars
and “#dieselgate” trending on Twitter.
Diesel engines account for less than 3 percent of new cars sold in the
United States but around half of cars in Europe, where governments have
encouraged their use to meet fuel efficiency and greenhouse gas targets.
Their biggest selling point is their fuel economy and low carbon
emissions compared to standard gasoline engines. But they also emit far
more nitrogen dioxide, a toxic gas blamed for health problems. The
suggestion that their emissions in real world conditions are worse than
reported in tests could harm the whole sector and alter the future of
the car industry worldwide.
“The Volkswagen issue is another blackeye for the diesel engine
overall,” Mike Jackson, the chief executive of the AutoNation, the
largest U.S. car retailer, told CNBC, adding the “brand position” of
Volkswagen was at risk in the U.S. market.
Volkswagen said on Tuesday it was setting aside 6.5 billion euros ($7.3
billion) to help cover the costs of the crisis.
Analysts doubt that will be enough, with the company disclosing that 11
million of its cars were fitted with Type EA 189 engines that had shown a
“noticeable deviation” in emission levels between testing and road use.
The U.S. Justice Department has launched a criminal probe, a source
familiar with the matter said. New York and other state attorneys
general are also forming a group to investigate.
“INVESTOR’S NIGHTMARE“
Environmentalists have long complained that carmakers game the testing
regime to exaggerate the fuel-efficiency and emissions readings of their
vehicles. European politicians on Wednesday voted to speed up rules to
tighten compliance with pollution limits on cars.
European car association ACEA said that so far there was “no evidence
that this is an industry-wide issue.”
But Societe Generale analysts said that while the uncertainty prevailed,
the whole autos sector was likely to be “dead money” for a while.
-Reuters
Read More : http://www.nst.com.my/news/2015/09/volkswagen-boss-quits-over-diesel-scandal
Read More : http://www.nst.com.my/news/2015/09/volkswagen-boss-quits-over-diesel-scandal
ไม่มีความคิดเห็น:
แสดงความคิดเห็น