Volkswagen CEO Steps Down, Company 'Needs Fresh Start'

Volkswagen CEO Dr. Martin Winterkorn has stepped down from his position after allegations surrounding vehicle violations of environmental standards have surfaced.

“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,” said Dr. Winterkorn. “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.”

Dr. Winterkorn continues with Volkswagen’s need for a “fresh start,” particularly in terms of personnel.

"I am clearing the way for this fresh start with my resignation," added Winterkorn.

After reviewing the issue at hand, the Executive Committee of Volkswagen AG’s Supervisory Board said that they will make recommendations for new personnel during a board meeting on Friday and will hold the personnel responsible for the diesel irregularities accountable.

“The Executive Committee is expecting further personnel consequences in the next days. The internal group investigators are continuing at a high tempo. All participants in these proceedings that has resulted in unmeasurable harm for Volkswagen, will be subject to the full consequences.”

Volkswagen came under fire on Friday, when the U.S. Environmental Protection Agency and the California Air Resources Board disclosed their findings, revealing diesel vehicle manipulations that violate environmental standards.

Four-cylinder diesel cars from model years 2009 to 2015 include software that circumvents emission standards for certain air pollutants. According to the EPA, the software is in violation of the Clean Air Act.

Moving forward, Volkswagen might be liable for civil penalties and injunctive relief for the violations. Approximately 482,000 diesel passenger cars were sold in the U.S. since 2008. For a list of affected models, click here.

Following the disclosure of findings from the U.S., Canada has also decided to launch a similar investigation.