Yahoo Finance 'Shocked' VW Boss Quits Over Emissions Scandal
Volkswagen (Other OTC: VLKAF - news) 's chief executive has quit following the emissions scandal engulfing the German carmaker.
Martin Winterkorn said he was shocked and stunned that "misconduct on such a scale was possible" at VW, which he said was in the middle of a "grave crisis".
The controversy is centred on "defeat devices" VW used to fool US emissions tests on diesel cars into believing the vehicles met environmental standards.
The company admits the software, which switches engines to a cleaner mode during official testing, may have been fitted in 11 million of its vehicles worldwide.
The "defeat devices" meant true emission levels, as much as 40 times the level legally allowed in the US, were hidden.
Mr Winterkorn said he accepted responsibility for "irregularities found in diesel engines" but had not been aware of any wrongdoing.
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At least 482,000 cars are to be recalled and the car maker could face penalties of more than $18bn (£11bn) in the US alone.
It (Other OTC: ITGL - news) is not known if the scandal affects cars on Britain's roads, but campaigners want the testing process for vehicles to be made more stringent.
Following a crunch meeting with members of the company's board, Mr Winterkorn announced his resignation to the stock market.
He said in a statement: "I am 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."
He said he decided to quit for the good of the firm, adding: "Volkswagen needs a fresh start" and he was convinced the firm wiill "overcome this grave crisis.” On Tuesday, he apologised for the scandal.
Martin Leach, former president of Ford Europe, and who also led Maserati and Mazda (BSE: MAZDALTD.BO - news) , told Sky News it was "possible" Mr Winterkorn did not know about the test rigging.
Mr Leach said: "He controlled a vast empire and there are a lot of demands on his time."
Meanwhile, Germany's transport minister has rejected claims he had prior knowledge of the technology VW used to rig emission tests.
"I have made it very clear ... that the allegations of the Green party are false and inappropriate," Alexander Dobrindt said.
A US law firm said on Wednesday it was suing Volkswagen in a class action lawsuit.
Chicago lawyer Robert Clifford said the impact was "massive" and that car buyers had not got what they paid for.
He said people were also affected because their cars could now be worth less.
Mr Clifford claimed VW owners could have problems keeping their cars on the road as officials might refuse to issue relevant permits.
New York Attorney General Eric Schneiderman has also confirmed an investigation.
VW has set aside an initial £4.7bn to cover the fallout and "win back the trust" of customers.
Shares (Berlin: DI6.BE - news) in VW were up 5% on Wednesday, but since the scandal broke at the start of the week the firm has lost around one third of its value, or £19bn.
