Porsche boss is in line to be VW chief
US scandal spreads to Europe
CRISIS-HIT Volkswagen is poised to appoint the head of its Porsche sports car brand to the top job as the emissions cheating scandal spread to Europe.
Porsche’s Matthias Muller was favourite to become the new chief executive of the disgraced carmaker after Martin Winterkorn quit on Wednesday.
Winterkorn, one of Europe’s best paid bosses, received £11.5m in annual pay and benefits last year and has a pension pot worth more than £20m.
He said his departure was ‘ the only way to win back trust. I am convinced that the Volkswagen Group and its team will overcome this grave crisis’.
But a new scandal was set to emerge over how much Winterkorn could be set to walk away with.
He could receive a severance package of up to two years of his annual salary, which would be worth more than £22m.
Yesterday the emissions crisis spread from the US to Europe amid accusations rival BMW could also have rigged emissions tests. Shares in BMW fell 5pc on fears some of i ts models may have exceeded EU pollution levels.
But a statement from BMW said it did ‘ not manipulate or rig any emissions tests’.
It added: ‘ We observe the legal requirements in each country and adhere to all local testing require- ments. When it comes to our vehicles, there is no difference in the treatment of exhaust emissions whether they are on rollers [during testing] or on the road.’
VW was found to have rigged tests for the emissions from its diesel cars to pass US clean air rules. It has said it will have to recall 11m cars worldwide after admitting they were fitted with software which conned testers into believing their vehicles met environmental standards.
It also said it will set aside £4.7bn in its third quarter accounts to help cover costs.
Alexander Dobrindt, Germany’s transport minister, said: ‘We don’t yet have figures for how many of these 11m cars that are apparently affected are in Europe.
‘That will be cleared up in the next few days.’
The European Commission said in a statement: ‘The commission invites all member states to carry out the necessary investigations.’ The UK is to launch its own probe.
The fines to be levied by the US Environmental Protection Agency could reach more than £11bn.
Since VW’s emission testing methods emerged, its shares have slumped by 26pc, wiping nearly £20bn from its value.
The company is listed in Germany but is owned through a complex structure controlled by the billionaire Porsche-Piech family.
The value of Porsche’s holding in the firm fell by more than £3bn to less than £8bn. The company has been plagued with internal squabbling for many years due to the family ownership structure.
Earlier this year Winterkorn survived an attempt by Ferdinand Piech to oust him from the board. Wolfgang Porsche, chairman of the family’s holding company, opposed his cousin Piech’s plan.
Wolfgang, 72, is grandson of the founder Ferdinand Porsche. The family split into two factions a generation ago as members of the family vied for power.