Porsche's Mueller takes reins at Volkswagen: Here's how largest emissions scandal unfolded

Days after admitting that the world’s top-selling carmaker had rigged diesel emissions to pass US tests during his tenure, longtime CEO of Volkswagen, Martin Winterkorn stepped down on Wednesday. Winterkorn, VW’s boss since 2007, had come under intense pressure since the Environmental Protection Agency’s (EPA) disclosure Friday that stealth software makes VW’s 2009-2015 model cars run cleaner during emissions tests than in actual driving. [caption id=“attachment_2444298” align=“alignleft” width=“380”]  Volkswagen. Reuters[/caption] Here’s a breakdown of the emissions scandal that wiped out nearly  €25 billion (around $28 billion) in the first two days of trading after the revelations: 18 September: EPA says VW intentionally violates clean air standards, faces fines of up $18 billion The US EPA said that Volkswagen intentionally skirted clean air laws by using a piece of software that enabled about 500,000 of its diesel cars to emit fewer smog-causing pollutants during testing than in real-world driving conditions. All the vehicles contain a device programmed to detect emission levels when they are undergoing official testing, the EPA said. The device works only when the testing is going on and not otherwise. The controls are turned off during normal driving situations, the EPA said, allowing the cars to emit more than the legal limit of pollutants. The EPA called the company’s use of the so-called “defeat device” illegal and a threat to public health. The cars, all built in the last seven years, include the VW Jetta, Beetle, Golf and Passat models, as well as the Audi A3. The EPA said VW faces fines of up to $37,500 per vehicle for the violations — a total of more than $18 billion. 20 September: VW chief “sorry” after EPA says firm skirted clean air law The CEO of Volkswagen apologized after VW customers said they felt duped after the EPA revelation. “I personally am deeply sorry that we have broken the trust of our customers and the public,” Volkswagen chief Martin Winterkorn said in a statement. He said VW has ordered an investigation and promised that the company would cooperate with regulators. “Let’s be clear about this. Our company was dishonest. With the EPA, and the California Air Resources Board, and with all of you. And in my German words, we have totally screwed up,” the head of Volkswagen’s US division, Michael Horn, said while unveiling a new Passat model in New York. The influential magazine Consumer Reports suspended its “recommended” rating from the Jetta and Passat diesels until it could get a recall repair and re-test the cars. 21 September: Volkswagen share price slump, prosecutors come calling Around €15 billion ($16.9 billion) was wiped off the market value of Volkswagen following EPA revelations. Volkswagen’s share price was down a stunning 19.4 percent at near three-year low of €130.20. The Obama administration announced it is expanding its investigation of what it’s calling “defeat devices” in diesel vehicles, to make sure other manufacturers aren’t using similar schemes to thwart federal Clean Air laws. In Germany, the transport minister said VW models will be examined for any similar manipulation. South Korea also said it will investigate emission levels of Volkswagen diesel vehicles. 22 September: Millions of cars fitted with suspect software worldwide, NY AG opens investigation Volkswagen said some 11 million cars worldwide were fitted with suspect software and set aside €6.5 billion ($7.3 billion) to deal with costs of emissions scandal. New York Attorney General Eric T Schneiderman said he has opened an investigation into the Volkswagen cars and he will collaborate with other states to enforce consumer and environmental protections in the case. 23 September: Volkswagen CEO steps down, takes responsibility for scandal Volkswagen CEO Martin Winterkorn resigned on 23 September, days after admitting. No replacement was announced. Winterkorn took responsibility for the “irregularities” found by US inspectors in VW’s diesel engines but insisted he had personally done nothing wrong. “I am doing this in the interests of the company even though I am not aware of any wrongdoing on my part,” his statement said. “Volkswagen needs a fresh start … I am clearing the way for this fresh start with my resignation.” Acting chairman, Berthold Huber, said company directors are “resolved to embark with determination on a credible new beginning.” He also added that a successor will be discussed at a board meeting on 25 September that was originally intended to approve extending Winterkorn’s contract through 2018. 24 September: VW cars with suspect software in Europe too, further resignations expected The software at the center of Volkswagen’s emissions scandal in the US was built into the automaker’s cars in Europe as well, though it isn’t yet clear if it helped cheat tests as it did in the US, Germany said. A member of Volkswagen’s supervisory board also said that he expects further resignations at the automaker in the wake of the scandal. Porsche chief Mueller takes over, S&P threatens to downgrade credit rating The head of German luxury sports car maker Porsche, Matthias Mueller, has been picked to succeed Martin Winterkorn as the chief executive of scandal-battered auto giant Volkswagen, the business daily Handelsblatt reported. In an article to be published in its Friday edition, the newspaper said 62-year-old Mueller has been chosen to take the driving seat vacated by Winterkorn. Standard & Poor’s threatened to downgrade Volkswagen’s credit rating over the scandal. A day after fellow rating agency Fitch had placed VW’s credit on “rating watch negative,” S&P said it had similarly put Volkswagen’s long-and-short-term corporate credit ratings on “Credit Watch with negative implications.” With inputs from agencies.