Volkswagen Chief Martin Winterkorn Resigns Amid Emissions Scandal

[PoliticAverse]

Source: New York Times

FRANKFURT — Martin Winterkorn resigned as chief executive of Volkswagen Wednesday, taking responsibility for an emissions cheating scandal that has gravely damaged the carmaker’s reputation and may spread to the German economy.

“As C.E.O. I accept responsibility for the irregularities that have been found in diesel engines,” Mr. 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 3 percent higher on the news late in the day in Germany. But they were still about 30 percent below the closing price in Frankfurt on Friday, before news of the scandal broke.

Read more: http://www.nytimes.com/2015/09/24/business/international/volkswagen-chief-martin-winterkorn-resigns-amid-emissions-scandal.html

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BBC article on the resignation: http://www.bbc.com/news/business-34340997

Jalopnik.com article on the resignation: http://jalopnik.com/martin-winterkorn-resigns-as-ceo-of-volkswagen-amid-die-1732559001

Winterkorn's full statement: http://www.volkswagenag.com/content/vwcorp/info_center/en/news/2015/09/Statement.html

Wolfsburg, 2015-09-23
Statement by Prof. Dr. Winterkorn

"“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.

As CEO I accept 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. I am doing this in the interests of the company even though I am not aware of any wrong doing on my part.

Volkswagen needs a fresh start – also in terms of personnel. I am clearing the way for this fresh start with my resignation.

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.

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."

[snooper2]

1. Is now the right time to buy shares? hit bottom yet?

[PoliticAverse]

3. Who knows how much this will end up costing them in fines and class action settlements.

They've already put aside about $7.3 billion, it could end up costing them significantly more.

[Angel Martin]

16. I wouldn't touch any of the autos right now

here is a link to the test organization web site.

http://www.transportenvironment.org/publications/dont-breathe-here-tackling-air-pollution-vehicles

they still haven't released the specific data for other manufacturers, but VW is actually the cleanest of the 6 listed !

[okojo]

20. No..

Until settlement deals have been announced by the DOJ, EPA, IRS, the EU, class action lawsuits are settled or completed. It is very unwise to invest in VW at this moment. The parameters of what needs to be done to the VW TDIs are still unknown, and it can add up to tens of billions of dollars and drag out for years.. There is also huge anxiety that VW won’t get their 2016 TDI models certify in the US, which could affect their bottom line..

[mahatmakanejeeves]

2. Dieselgate

Dieselgate

[procon]

4. How did VW ever imagine their scheme wouldn't be found out?

This was nothing but sheer greed, and whoever gave the plan a thumbs up was stupidly juvenile and shortsighted in thinking they could get away with fooling America's avid car enthusiasts. And now that this plot is exposed, what else are they hiding? I suspect that VW isn't the only automaker with similar schemes to deceive environmental laws and defraud customers. In comparison to the relatively weak environmental regs in the US, many other countries have tougher standards so we are probably not the only country they have targeted.

[PoliticAverse]

7. Apparently about 11 million cars are involved with possibly 10 million sold in Europe.

See: http://www.nytimes.com/2015/09/23/business/international/volkswagen-diesel-car-scandal.html

[procon]

9. Is that large enough to precipitate a potential VW bankruptcy?

It's an exponential threat to the automaker from multiple fronts: starting with national and state governments, environmental agencies, all the businesses involved in shipping, promoting, selling and maintaining these cars, the auto shows, the independent groups that test and rate, and recommend cars, and the consumers.

Whatever the financial cost to VW, their reputation is ruined and it will be many years before they can repair the damage done to their brand.

[PoliticAverse]

13. Well they made about $14 billion profit worldwide last year and more than half their sales

are apparently diesel cars.

http://fortune.com/global500/volkswagen-8/

[Lychee2]

12. Yes it's hard to believe that VW would pull something like this.

Like some other people, I thought that the new water-cooled Beetle was introduced because the old air-cooled one could not meet US emission standards, and the water-cooled one could. But that was just an illusion. Somehow, I didn't expect VW to be this sleazy and this foolish. Of course they would eventually be caught. But they got away with it for a long time--since 2009. Whatever money they saved by faking their emissions all this time will be dwarfed by the losses they will incur from this.

[eggplant]

14. This is only about their diesel engines.

A gas-powered beetle isn't part of this.

[Lychee2]

17. That limits the damage for sure.

+1

[thesquanderer]

5. Even Condaleeza Rice could have seen this one coming. (n/t)

[NCjack]

10. +1000

[rocktivity]

6. "I accept responsibility but I'm not aware of doing anything wrong."

"So I'll leave quietly -- along with a big fat severance package like the one the CEO of United Airlines received when he got caught up in Chris Christie's Bridge(t)-Gate scandal."


rocktivity

[Locrian]

8. right

Like the mob says: "the fish rots from the head down".

I'm sure he probably never directed this - but he's damn sure responsible for whatever business climate "system" that incentivized the behavior. Likely a system with a combination of aggressive goals and metrics with no tolerance for reality.

[Ruby the Liberal]

11. How many millions in that parachute?

[Psephos]

15. Different story if he was GM's CEO instead of VW's.

He could have put death-sentence Cobalts on the road with known fatal defects, and walked with a $900 million fine...*and* kept his job.

Never underestimate the power of fascism. When big business and government scratch each other's backs, they will put a knife into yours.

[Nihil]

18. +1 ... the trick is obviously to kill people rather than just cheat them ... (n/t)

[Paulie]

19. GM CEO fired a division head instead in 2013

http://mobile.nytimes.com/2013/07/27/business/gm-dismisses-executives-after-india-begins-investigating-recall-of-vehicles.html?referrer=