Less than a week after the EPA revealed that Volkswagen had cheated on emissions tests involving its popular diesel models, the automaker has been taking a beating. Its stock price has collapsed; authorities around the world are launching probes; and potential buyers appear to be steering clear of its showroom.
The situation has been growing worse by the day, CEO Martin Winterkorn resigning on Wednesday, with VW indicating a broader personnel shake-up likely. That’s no surprise, says Michael Jackson, CEO of the country’s largest auto retailer, Auto Nation. The crisis, he says, could not have been triggered by just a “few bad apples,” but reveals “systemic” corruption at Germany’s Volkswagen AG
Meanwhile, the impact is likely to extend beyond VW itself, Among other things, it could short-circuit the nascent revival of the American diesel car market. “This is another black eye for diesel,” Jackson told TheDetroitBureau.com.