UPDATE September 23, 2015
Volkswagen chief executive Martin Winterkorn resigned today, saying in a statement, “I am clearing the way for a fresh start with my resignation.”
Eleven million diesel Volkswagen vehicles worldwide.
That ‘s how many vehicles are fitted with software at the centre of a U.S. emissions scandal, according to a statement released by Volkswagen today. A profit warning came with the admission.
The company’s share price dropped by 17% yesterday, and another 20% by mid-morning today.
In Canada, a law firm has launched a class-action lawsuit against the car maker.
Reputation of world’ largest automaker is at stake
Business analyst Robert Levy says Volkswagen’s tarnished reputation may take years to rebuild.
“The greater impact and almost uncertainty, as we saw it in Volkswagen share price which is down 35% over the last two days at trades in Germany, is what it means for the outlook for their sales.”
Volkswagen recently overtook Toyota as the world’s largest automaker in July.
Meantime, Volkswagen Canada has confirmed they’ve issued a stop-sale for all vehicles fitted with the software.
Models affected in Canada carry the 2.0-litre TDI engine, including:
- Jetta from 2009 to present
- Golf, 2010 to present
- Beetle 2013-2015
- Passats, 2012-present
Jon McComb spoke with Paul Godsmark, Chief Technology Officer with the Canadian Automated Vehicles Centre of Excellence. While Godsmark says that while there’s a lot of hype around this at the moment, he cautions not to jump to conclusions yet because it’s possible there are other vehicle manufacturers doing the same thing.