Volkswagen’s CEO, Rupert Stadler, has been removed from his position amidst an emissions scandal that has rocked the company. Stadler, who has been in jail since June due to his alleged involvement in the emissions probe, has stepped down from his role at Audi’s parent company, Volkswagen.
The decision to sever ties with Stadler was made as a result of his ongoing pretrial detention, which prevents him from fulfilling his duties on the management board. The company stated that Stadler wishes to focus on his defense and is unable to continue in his role.
Stadler’s arrest marks a significant development in the diesel emissions scandal that has plagued Volkswagen since 2015. The company admitted to rigging millions of diesel engines to cheat on emissions tests, causing a sharp decline in its share price and damaging consumer and regulatory confidence in diesel technology.
In response to the scandal, Volkswagen announced that it would be offering incentives to customers in Germany who wanted to trade in older diesel cars for cleaner models. This initiative is part of the company’s efforts to rectify the damage caused by the emissions scandal and restore trust among consumers.
The removal of Stadler comes after the indictment of former CEO Martin Winterkorn by US prosecutors in May. Winterkorn was charged with wire fraud and conspiracy to defraud American customers in connection to the scandal. He was replaced by Matthias Mueller, who stepped down earlier this year and was succeeded by Herbert Diess.
Diess, a veteran of BMW, took over as CEO of Volkswagen and acknowledged the significant loss of trust that the company had experienced. He emphasized that rebuilding public confidence in the automaker would be a long and challenging process that would require time and effort.
The emissions scandal has already cost Volkswagen over $30 billion in recalls, legal penalties, and settlements, making it one of the most costly corporate scandals in history. The company’s decision to part ways with Stadler is a significant step in its efforts to address the fallout from the scandal and regain the trust of consumers and regulators.