Updates throughout with analyst comments, other details.
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The US Environmental Protection Agency (EPA) last week revealed that Volkswagen had installed illegal software to falsify emission tests, allowing its diesel cars to produce up to 40 times more pollution than allowed. It could face billions of dollars in fines in the United States, as well as lawsuits from angry customers.
Evercore ISI analyst Arndt Ellinghorst said he would welcome the appointment of Mueller, a former head of product strategy and close to the Piech-Porsche family that controls Volkswagen.
The task facing Mueller, if his selection is confirmed, is huge. “Through many conversations with Matthias Mueller, I know that he will preserve the autonomy of Porsche”, Mr Hück said.
“This scandal has a huge impact”, says Florian Heinz, a journalist who has covered Volkswagen for the local paper for six years – and has never had a story like this.
Mueller said the company would introduce “even tougher compliance rules” and pledged to make VW “an even stronger company”. According to reports, Germany might even work with USA law firm Jones Day for a thorough inquiry into Volkswagen.
“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”, Winterkorn said in a statement. “This has in part already happened”.
VW shares crashed 37% in 48 hours following the accusations, which have devastated the company and its shareholders.
The new man at the top not only has the commercial fate of a giant corporation in his hands, but the livelihoods of hundreds of thousands of workers around the globe.
Mueller became CEO of Porsche in 2010, having held several management positions at VW and its premium-car subsdiary Audi.
He joined the company’s Audi subsidiary in 1971, training as a toolmaker and then studying computer science.
This is a view shared by Simon Chadwick, Professor for Sport Business Strategy and Marketing at Coventry University, who said sports deals would quickly come under scrutiny as Volkswagen set aside funds for those potential claims.
Christian Klingler, 47, has been fired as a member of the Board of Management of Volkswagen AG with responsibility for Sales and Marketing.
Volkswagen: also said it’s reorganizing its North America activities and that Michael Horn will remain as USA chief. It did not specify who they would be. “We aren’t going to tell them what these tests are; they don’t need to know”.
He also said checks would be carried out on other manufacturers’ vehicles.
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He also offered another apology. This is the only way to win back trust.
