Volkswagen CEO Quits Amid Emissions Scandal

Strategic Insights -

The head of Volkswagen, Martin Winterkorn, has resigned as chief executive over a scandal in which the company fitted a device to its cars to pass emissions tests. This so-called "defeat device" allowed the vehicles to produce up to 40 times the legal amount of nitrogen oxide pollutants on the road. Winterkorn denied any wrongdoing, but said he was "shocked" by the events and took responsibility for the scandal, saying the company needed a "fresh start". The issue has raised concerns about the accuracy of emissions testing and whether vehicles affected by the scandal are on Britain's roads.

Key Takeaways:

  • Volkswagen's CEO, Martin Winterkorn, has resigned over the emissions scandal, citing the need for a "fresh start" for the company.
  • The scandal involves a device fitted to 11 million vehicles worldwide, which switches engines to a cleaner mode during official emissions testing, but produces higher levels of pollutants on the road.
  • The Environmental Protection Agency (EPA) in the US said the device allowed the cars to produce nitrogen oxide pollutants at up to 40 times the legal standard.
  • UK motorists may take legal action against the company for mis-selling them over-polluting cars, according to lawyers.
  • The scandal has raised concerns about the accuracy of emissions testing and the need for a more stringent testing process.
  • The European Commission is considering introducing a real driving emissions test, which would incorporate modern technologies and on-road conditions, with a proposed introduction date of 2017.
  • UK Transport Secretary Patrick McLoughlin has written to the European Commission to call for the introduction of the new test as soon as possible in the wake of the VW scandal.
  • Other states in the US are also looking at filing class action suits against Volkswagen, and the US Department of Justice is investigating the issue.

Statistics:

  • 11 million vehicles worldwide were fitted with the emissions cheating device (Source: Volkswagen)
  • Up to 40 times the legal amount of nitrogen oxide pollutants were produced by the affected vehicles (Source: Environmental Protection Agency)
  • 1996 is the date of the current European laboratory testing system (Source: Transport Research Laboratory)
  • 2017 is the proposed date for the introduction of a real driving emissions test (Source: European Commission)

Sources:

  • Volkswagen
  • Environmental Protection Agency (EPA)
  • Transport Research Laboratory
  • European Commission
  • Press Association