Volkswagen CEO Martin Winterkorn resigned on Wednesday, taking responsibility for the German carmaker's rigging of U.S. emissions tests in the biggest scandal in its 78-year history.
"Volkswagen needs a fresh start - also in terms of personnel. I am clearing the way for this fresh start with my resignation," Winterkorn said in a statement.
He said he was shocked by events of the past few days, above all that misconduct on such a massive scale was possible at the company.
A five-member executive committee had grilled Winterkorn, 68, since morning at the company's headquarters in Wolfsburg, Germany. The company was under huge pressure to take decisive action, with its shares down more than 30 percent in value since the crisis broke, and the bad news still coming.
German prosecutors said on Wednesday they were conducting a preliminary investigation into the manipulation of vehicle emission test results at Volkswagen, while French Energy Minister Segolene Royal said her country would be "extremely severe" if its investigation into the firm found any wrongdoing.
U.S. authorities are planning criminal investigations after discovering that Volkswagen programmed computers in its cars to detect when they were being tested and alter the running of their diesel engines to conceal their true emissions.
German Chancellor Angela Merkel had urged Volkswagen to move "as quickly as possible" to restore confidence in a company held up for generations as a paragon of German engineering prowess.
SHOCKWAVES
The U.S. Environmental Protection Agency (EPA) said on Friday Volkswagen could face penalties of up to $18 billion for cheating emissions tests on some of its diesel cars.
The story has sent shockwaves through the car market, with dealers in the United States reporting people holding back from buying diesel cars and "#dieselgate" trending on Twitter.
Diesel engines account for less than 3 percent of new cars sold in the United States but around half of cars in Europe, where governments have encouraged their use to meet fuel efficiency and greenhouse gas targets.
Their biggest selling point is their fuel economy and low carbon emissions compared to standard gasoline engines. But they also emit far more nitrogen dioxide, a toxic gas blamed for health problems. The suggestion that their emissions in real world conditions are worse than reported in tests could harm the whole sector and alter the future of the car industry worldwide.
"The Volkswagen issue is another blackeye for the diesel engine overall," Mike Jackson, the chief executive of the AutoNation, the largest U.S. car retailer, told CNBC, adding the "brand position" of Volkswagen was at risk in the U.S. market.
Volkswagen said on Tuesday it was setting aside 6.5 billion euros ($7.3 billion) to help cover the costs of the crisis.
Analysts doubt that will be enough, with the company disclosing that 11 million of its cars were fitted with Type EA 189 engines that had shown a "noticeable deviation" in emission levels between testing and road use.
The U.S. Justice Department has launched a criminal probe, a source familiar with the matter said. New York and other state attorneys general are also forming a group to investigate.
"INVESTOR'S NIGHTMARE"
Environmentalists have long complained that carmakers game the testing regime to exaggerate the fuel-efficiency and emissions readings of their vehicles. European politicians on Wednesday voted to speed up rules to tighten compliance with pollution limits on cars.
European car association ACEA said that so far there was "no evidence that this is an industry-wide issue".
But Societe Generale analysts said that while the uncertainty prevailed, the whole autos sector was likely to be “dead money” for a while.
Reuters
Wed Sep 23 2015
Chief Executive Martin Winterkorn speaks at the annual news conference of Volkswagen in Berlin, in this file picture taken March 12, 2015. - REUTERS/Fabrizio Bensch/Files
Regu Malaysia muncul juara tewaskan Thailand 2-0
Stadium Titiwangsa menjadi saksi gemilang pasukan Malaysia selepas menamatkan badi berdepan Thailand di kejohanan Piala Dunia ISTAF apabila menewaskan seteru utama 2-0.
Doubles Malaysia tewaskan Thailand, rampas gelaran juara
Hari bersejarah buat sukan sepak takraw negara apabila berjaya menjuarai kejohanan Piala Dunia ISTAF buat kali pertama dalam acara doubles.
Ketua negara beri penghormatan terakhir buat Raisi
Pemimpin-pemimpin dunia dan menteri tertinggi dari pelbagai negara berhimpun di Tehran bagi memberi penghormatan terakhir buat Presiden Iran Ebrahim Raisi yang maut dalam nahas helikopter di sempadan Azerbaijan. Antara figura yang dilihat hadir, Emir Qatar, Tamim bin Hamad Al Thani, pemimpin-pemimpin Hamas, Ismail Haniyeh dan Presiden Tunisia, Kais Saied.
Pelihara sekiranya tidak mahu kehilangan khazanah 'megadiverse' negara
Malaysia merupakan antara negara yang kaya dengan kepelbagaian biologi berbanding dengan negara-negara seperti Afrika dan Amerika Syarikat dan khazanah yang ada di negara ini harus dinikmati, disayangi dan dicintai demi masa hadapan untuk generasi yang akan datang.
Namun pun begitu, menurut Setiausaha Bahagian Pengurusan Biodiversiti dan Perhutanan NRES, S.Siva Kumar, dia berpendapat bahawa mungkin orang ramai tidak dapat menikmati khazanah negara untuk jangka masa yang panjang jika orang ramai tidak ambil cakna tentang kepentingan ini.
Namun pun begitu, menurut Setiausaha Bahagian Pengurusan Biodiversiti dan Perhutanan NRES, S.Siva Kumar, dia berpendapat bahawa mungkin orang ramai tidak dapat menikmati khazanah negara untuk jangka masa yang panjang jika orang ramai tidak ambil cakna tentang kepentingan ini.
Ketua negara beri penghormatan terakhir buat Raisi
Pemimpin-pemimpin dunia dan menteri tertinggi dari pelbagai negara berhimpun di Tehran bagi memberi penghormatan terakhir buat Presiden Iran Ebrahim Raisi yang maut dalam nahas helikopter di sempadan Azerbaijan. Antara figura yang dilihat hadir, Emir Qatar, Tamim bin Hamad Al Thani, pemimpin-pemimpin Hamas, Ismail Haniyeh dan Presiden Tunisia, Kais Saied.
Ahmad Zahid mulakan lawatan rasmi ke China
Timbalan Perdana Menteri Datuk Seri Dr Ahmad Zahid Hamidi tiba di Hong Kong pada Rabu untuk memulakan lawatan rasmi ke China. Beliau diiringi isteri Datin Seri Hamidah Khamis. Ketibaan beliau dan delegasi di hotel penginapan di Hong Kong disambut oleh Timbalan Menteri Luar, Datuk Muhamad Alamin dan pegawai kanan kerajaan.
Polis Melaka tawar diskaun saman 50%
Polis Diraja Malaysia menawarkan diskaun saman sebanyak 50% kepada pesalah trafik pada Sabtu dan Ahad ini sempena sambutan Hari Belia Negara 2024 Peringkat Kebangsaan yang akan berlangsung di Dataran Pahlawan, Melaka.
Pendaki ditemui selamat selepas lima hari
Seorang pemuda yang dilaporkan hilang sejak Sabtu lepas ketika mendaki di Bukit Hill Top Batu Kawan di Pulau Pinang, ditemukan selamat pada pukul 2 petang Rabu.
Tiada peningkatan ketara di Johor
Peningkatan baharu kes COVID-19 di Singapura.
Johor mengambil langkah berjaga-jaga, biarpun kes COVID-19 di negeri itu tidak menunjukkan peningkatan yang ketara.
Johor mengambil langkah berjaga-jaga, biarpun kes COVID-19 di negeri itu tidak menunjukkan peningkatan yang ketara.
YL’s Gelateria asah bakat, kemahiran penghidap autisme
YL’s Gelateria itu turut berperanan menyediakan penghidap autisme dengan peluang pekerjaan dan menerima latihan untuk membangunkan kemahiran yang diperlukan dalam dunia pekerjaan.