Volkswagen’s CEO resigns amid emissions-cheating scandal

Volkswagen, the largest carmaker in the world, is accused by regulators of using illegal “defeat device” software that causes 482,000 of its diesel cars in the U.S.to cheat on emissions standards tests.

After an eight-hour crisis board meeting on Wednesday, however, Mr Winterkorn offered his resignation, expressing “shock” at the scale of the fraud, accepting responsibility but insisting he was “not aware of any wrongdoing” on his part. “I am clearing the way for this fresh start with my resignation”, 68-year-old Winterkorn, who has been at the helm for eight years, said in a statement, as reported by Reuters.

“It is premature to comment on whether any specific immediate surveillance measures are also necessary in Europe and [on] the implications for vehicles sold by Volkswagen in Europe”, said a spokesperson for the European Commission.

“I have always been driven by my desire to serve this company, especially our customers and employees”.

An AFP photographer saw cars with tinted windows entering the Volkswagen headquarters in Wolfsburg in the morning but it was impossible to say whether they were joining the board meeting.

As per the US Environmental Protection Agency (EPA), Volkswagen could face penalties of up to 18 billion U.S. dollars.

Winterkorn, 68, was Volkswagen CEO for eight years.

While Winterkorn’s exit is an important development in VW’s efforts to deal with this diesel emissions catastrophe, it is likely the first of many hard steps.

It all began on Monday, when the company admitted rigging the emission tests’ results, to get around US regulations.

Volkswagen also has to worry about possible criminal charges.

The company has been ordered by the USA government to recall 4.82 lakh cars of VW and Audi brands produced since 2009.

Ms Young added that if the scandal spreads to other manufacturers it could give rise to a legal action “the like of which this country has never seen”.

The Volkswagen supervisory board is scheduled to convene Friday, at which point it is expected to decide who will succeed Winterkorn. “This is the only way to win back trust”, Winterkorn concluded.

The scandal has wiped billions off Volkswagen’s value since the start of the week, although yesterday its share price closed up more than five per cent.