Martin Winterkorn: CEO Refuses To Resign Amid VW Emissions Scandal
Martin Winterkorn is facing intense scrutiny amid the VW emissions scandal. In an official statement, the Volkswagen CEO apologized for the company’s “misconduct.” However, he dispelled rumors that he plans to step down.
On Friday, the United States Environmental Protection Agency announced the results of an investigation into vehicles manufactured by Volkswagen AG, Audi AG, and Volkswagen Group of America.
As stated in the Notice of Violation, VW is accused of manufacturing and installing defeat devices on numerous vehicles equipped with light-duty diesel engines.
How Volkswagen got away with diesel deception http://t.co/WyWLcS8hs5 pic.twitter.com/usWVRiSuer
— The New York Times (@nytimes) September 22, 2015
Essentially, the devices were designed to detect an emission test and produce inaccurate results — therefore bypassing emissions standards as defined by the Environmental Protection Agency’s Clean Air Act.
Amid the EPA investigation, Volkswagen launched an internal investigation into the alleged violation. On Tuesday, the German automaker admitted more than 11 million vehicles were involved in the VW emissions scandal.
As reported by CNN, Volkswagen confirmed $7.3 billion was “set aside” to cover costs associated with the scandal and subsequent recall.
Citing an article in German magazine Der Tagesspiegel, Jalopnik reported VW CEO Martin Winterkorn was to “be replaced” with “Porsche CEO Matthias Müller.” However, an unnamed Volkswagen spokesperson dismissed the rumor as “ridiculous.”
Although Winterkorn issued “a formal apology to… customers, to the authorities, and to the general public,” he did not mention any plans to step down.
Martin Winterkorn may retain his position as CEO. However, supervisory board member Olaf Lies confirmed the VW emissions scandal will certainly make an impact on the company’s current management structure.
As discussed on the Volkswagen website, Martin Winterkorn was appointed Chairman of the Board of Management of Volkswagen AG in January 2007. He also serves as Chairman of the Supervisory Board of AUDI AG and Chairman of the Board of Management of Porsche Automobil Holding SE. He is specifically responsible for the automaker’s “Group Research and Management.”
In response to the VW emissions scandal, Winterkorn said the automaker is taking “the findings very seriously.” As reported by Car and Driver, he admitted Volkswagen has “broken the trust of [their] customers and the public.” However, he outlined a plan to resolve the current issue and prevent similar problems in the future.
“We will cooperate fully with the responsible agencies, with transparency and urgency, to clearly, openly, and completely establish all of the facts of this case… We at Volkswagen will do everything that must be done in order to re-establish the trust that so many people have placed in us, and we will do everything necessary in order to reverse the damage this has caused.”
Amid the VW emissions scandal, shares in Volkswagen fell an estimated 17 percent on Monday and Tuesday. Although the investigation is not complete, the German automaker could face civil and criminal charges. Despite the rumors, Martin Winterkorn has not mentioned any plans to resign.
[Image via Sean Gallup/Getty Images]
