BREAKING: Volkswagen CEO Resigning After Cheating Scandal

By BETH DALBEY (Patch Staff)

Martin Winterkorn has resigned as CEO of Volkswagen after the German automaker admitted it had intentionally circumvented smog-reduction standards on more than 11 million diesel-engine vehicles sold in the U.S., CNBC is reporting.

The EPA said Friday VW could face fines of up to $18 billion and criminal prosecution for installing so-called “defeat device” software that allows vehicles to emit up to 40 times more diesel pollution than is legally allowed.

The company’s stock price and reputation has suffered since the fines were announced.

“I am shocked by the events of the past few days. Above all, I am stunned that misconduct on such a scale was possible in the Volkswagen Group,” Winterkorn said in a statement.

“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. I am doing this in the interests of the company even though I am not aware of any wrong doing on my part.”

Volkswagen’s U.S. headquarters has been located in Herndon since 2007.