Shares in auto giant Volkswagen shot up more than four percent in early trading on the Frankfurt stock exchange on Friday ahead of the widely anticipated announcement of its new chief executive.
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Martin Winterkorn, the CEO who announced his resignation this week, is eligible to receive at least $30 million in pension payouts from the Volkswagen Group with the possibility of receiving millions more in severance, according to company documents.
The announcement comes on the same day that Germany’s transport minister, Alexander Dobrindt, said Volkswagen rigged emissions tests on some 2.8 million diesel vehicles in that country, following revelations last week that it had manipulated tests conducted by the U.S. Environmental Protection Agency.
“We stand by our responsibility”, he said, adding that “carefulness is even more important than speed”. “So we will introduce even tougher compliance and governance standards in the company”.
“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”.
“We need a climate where problems aren’t hidden”, Bernd Osterloh, VW’s top labour leader said at a press conference in Wolfsburg, Germany.
Mr Mueller, who has worked for parts of the Volkswagen empire since the 1970s, is a management board member of Porsche and so is close to the Piech-Porsche family that controls Volkswagen through the holding company. The head of Volkswagen’s United States division apologized late 21 September 2015 for the German automaker’s use of software created to help its cars cheat U.S. emissions standards.
The Chairman of Porsche AG on Friday became CEO of the Volkswagen Group, which is caught in a emissions cheating scandal.
Based in Wolfsburg – a city established 78 years ago to house vehicle workers – the business which also owns Audi, Skoda, Seat and Porsche appeared to be living up its name, which translates as “people’s car”. He assumed his role as president of the Executive Board of Dr. Ing. h.c. F. Porsche AG, Stuttgart, in 2010. Volkswagen issued a recall for all cars that were affected, which range from diesel-run Jettas to Audis to Beetles, and customers worldwide have demanded refunds or financial restitution.
BERLIN, Sept 24 Two of Volkswagen group’s highest-ranking engineers will be forced to quit as the German carmaker is pushing steps to clear up the diesel emissions scandal, Bild reported on Thursday, citing unnamed company sources. US officials said September 18 that the carmaker had cheated during tests of diesel-powered vehicles sold since 2009.
“We have been assured by Volkswagen that they are not going anywhere and will continue to grow in Chattanooga”, Republican Gov. Bill Haslam said through a spokesman.
“All participants in these proceedings that has resulted in unmeasurable harm for Volkswagen, will be subject to the full consequences”, Volkswagen’s Executive Committee said in a summary statement Thursday.
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He said he would tighten up procedures at the company: “At no point was the safety of our customers in danger”. “I ask all of you: Give Volkswagen a chance to make good the damage and win back lost trust”.
