Porsche chief Matthias Mueller will be named the new CEO of Volkswagen, sources revealed to Reuters, as the fallout from the German automobile manufacturer's emissions test cheating scandal continued to expand.
Martin Winterkorn, the former CEO of Volkswagen, resigned on Sept. 23, a few days after apologizing for breaking the trust of customers over software found in some Volkswagen diesel-powered vehicles that were designed to cheat emissions testing.
The software, discovered in more than 480,000 Volkswagen vehicles, tricked emissions test results to hide the fact that the cars were releasing massive amounts of nitrogen oxide into the atmosphere that was 40 times over the allowable levels.
Mueller will now be taking responsibility over Volkswagen as it faces its toughest challenge over its 78-year history, a challenge that only worsened as officials in both the United States and Europe stepped up their efforts in their investigations of the case.
"We have been informed that also in Europe, vehicles with 1.6 and 2.0 liter diesel engines are affected by the manipulations that are being talked about," said transport minister of Germany Alexander Dobrindt, adding that the number of affected cars in Europe have not yet been determined.
Separately, an investigation involving multiple states was launched in the United States on the diesel vehicles of Volkswagen, with subpoenas to be sent to the company.
"I am furious that the world's leading car company willfully took steps that polluted our environment and deceived consumers," said Maryland Attorney General Brian Frosh.
According to Volkswagen, over 11 million vehicles have the offending software installed, but it was not activated in most of them.
Mueller, as Volkswagen's new CEO, will have to handle any lawsuits and criminal investigations that will be placed upon the company, in addition to fines and the possibility that the affected cars will have to be refitted. In addition, Mueller will need to bring back the trust of car dealers and customers, who have previously vented out their frustration in not receiving information on how the scandal will affect them.
While the investigations and litigations will likely take years, the one-time apprentice toolmaker will at the same time need to run a €200 billion-in-sales automobile manufacturer with massive size, influence and reach. Volkswagen produces the cheap Skoda vehicles in addition to its Volkswagen brand, along with luxury cars under Audi and Bentley and sports cars under Bugatti, Lamborghini and Porsche.