After the initial Volkswagen scandal discovery of millions of cars outfitted with software to avoid strict emissions regulations, the chief executive of the German auto manufacturer Martin Winterkorn resigned. His replacement was announced on September 25 as head of Porsche, Matthias Muller. Along with the announcement of the new chief executive came companywide changes that are intended to repair damage to the company after “Dieselgate.”
The effects of the Volkswagen software that duped emissions tests on the diesel models is yet undetermined. The environmental impact is considered to be substantial with 11 million vehicles around the world emitting nitrogen oxides 10 to 40 times above U.S. legal limits. This was done by the “defeat device” inserted into diesel passenger cars that sense when a vehicle is being tested rather than driven on a road, triggering the vehicle emissions to regulation levels.
Berthold Huber, the chairman of the company’s supervisory board called the incident “a moral and political disaster.” Under the new chief executive, removal of several leaders in connection to the scandal is underway. Among the suspended individuals is Christian Klingler, the former top sales and marketing executive at Volkswagen. As stock and sales continue to drop around the globe, Volkswagen hopes that the new leadership will promote the regrowth of trust.
One of the main concerns for consumers is in regards to compensation that that former Chief Executive Martin Winterkorn promised was coming. Volkswagen made a statement assuring that $7.3 billion dollars was set aside for VW diesel passenger vehicle owners affected by the scandal. In the wake of falling estimated values of affected vehicles, many drivers are upset that they were deceived into harming the environment and are now possess fraudulent vehicles. However no plan has been released to the public on how these funds will be distributed to the car owners. However no plan has been released to the public on how funds will be distributed to the car owners.