Diesel Emissions Crisis: Top VW Engineer Resigns

We have an update to a story that we’ve been updating since it broke in late September. The fallout from the Volkswagen diesel emissions crisis continues with a resignation of one of the company’s top employees.

Ulrich Hackenberg, an engineer on the Audi management board in charge of technical development, has resigned. Hackenberg, who was closely tied to the development of the diesel engine, which has caused stirred a controversy and grabbed the attention of the EPA. Hackenberg was one of eight executives who were suspended in the wake of the diesel emissions crisis. The company’s board has voted to replace Hackenberg with Stefan Knirsch who has worked in top engine development positions for Audi and Porsche on and off for the past 25 years.

As Hackeberg stepped away, Matthias Mueller stepped up, again. Mueller was appointed as chairman of Audi by the Audi supervisory board. Mueller will take the place of Dr. Martin Winterkorn, the former chief executive of Volkswagen AG, who resigned within days of the start of the diesel emissions crisis.

As the Volkswagen crisis rolls forward the question becomes when will it end and how much will it cost?

Volkswagen began working with a dozen banks in November in order to secure $21.5 billion in short-term loans to help cover the expenses associated with the diesel emissions crisis. Costs that could come Volkswagen’s way include numerous class action lawsuits and fines from government organization such as the EPA and other environmental regulatory groups in Europe and beyond. In a worst-case scenario, the VW crisis could end up costing the automaker over $85 billion.

How would you rate Volkswagen’s handing of the VW crisis thus far? They’ve offered a $2,000 loyalty incentive to buy a vehicle and another $1,000 in gift cards and repair work to apologize to their diesel owners … do you think it’s enough? What will Volkswagen have to do in order to finally put an end to the diesel emissions crisis?