Volkswagen Chief Executive Officer Martin Winterkorn has resigned in the wake of revelations that the company cheated emissions tests in the United States, according to multiple reports.
The news came right after 10 a.m. Wednesday, and represents another major shake up for the German automaker. The company has been reeling since Friday’s announcement from the Environmental Protection Agency that more than 482,000 of the company’s “clean diesel” vehicles produced between 2009 and 2015 may have had software installed that could tell when the vehicles were undergoing emissions testing.
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According to the EPA, the software would have the vehicles reduce their emissions during tests. When being driven normally, the vehicles would have significantly higher emissions, the agency reported.
The company could face more than $18 billion in fines and its stock has plummeted this week, having fallen 28 percent since the opening of trading on Monday morning.
The EPA charges led members of the House to call for hearings into the company, and led one Senate Democrat to say VW executives need to be thrown in jail.
In a statement posted on Volkswagen’s website Wednesday, Winterkorn said he was “shocked” by the events since Friday’s announcement by the EPA and that he accepted responsibility for the software on the “clean diesel” vehicles. Still, he denied any wrongdoing.
“I am doing this in the interests of the company even though I am not aware of any wrongdoing on my part,” he said. “Volkswagen needs a fresh start — also in terms of personnel. I am clearing the way for this fresh start with my resignation.”
He called on the company to continue to be transparent with customers and regulators.
“This is the only way to win back trust,” he said. “I am convinced that Volkswagen Group and its team will overcome this grave crisis.”
About 11 million vehicles around the world could be programmed with the software that allows the vehicles to cheat emissions tests, according to a company statement. The company added it is setting aside more than $7.2 billion to deal with the necessary fixes to the vehicles affected by the scandal.
Those vehicles include some of VW’s most popular models, including the Passat, the Jetta, the Beetle and Audi’s A-3.
In addition to facing a probe from the EPA and hearings in the House, VW is also being investigated by the California Air Resources Board, the U.S. Department of Justice, the New York Attorney General’s Office and a class action lawsuit has already been filed, according to news reports.
German authorities are also said to be investigating the automaker.
