Rolling coverage of the VW emissions scandal that has rocked the car industry * Introduction: Germany faces VW crisis * Analyst: Bigger threat than Grexit * Winterkorn’s exits with huge pension pot * As it happened: Volkswagen CEO resigned 8.15am BST SHARES IN VOLKSWAGEN HAVE RISEN AROUND 3.5% AT THE START OF TRADING IN FRANKFURT, AS INVESTORS CONTINUE TO WELCOME WINTERKORN’S DEPARTURE. They’re still down around 25% since the scandal broke, though. Volkswagen shares trade 3.5% higher after open despite or b/c several broker downgrades. pic.twitter.com/esiovQ1wGj 8.08am BST MARTIN WINTERKORN IS WALKING AWAY FROM VOLKSWAGEN WITH A MASSIVE PENSION POT WORTH OVER €28M. And as he stepped down, rather than being fired, he could also collect two years pay despite the emissions scandal. After Winterkorn disclosed Wednesday that he had asked the board to terminate his role, company spokesman Claus-Peter Tiemann declined to comment on how much money the departing CEO stands to get. Volkswagen’s most recent annual report outlines how Winterkorn, its leader since 2007, could theoretically collect two significant payouts. Winterkorn’s pension had a value of €28.6m at the end of last year, according to the report, which doesn’t describe any conditions that would lead the company to withhold it. And under certain circumstances, he also can collect severance equal to two years of “remuneration.” Martin Winterkorn likely to leave #Volkswagen with €28.6 million ($32 million) pension http://t.co/1MKPa3qhrO pic.twitter.com/e2nh8ihwhP 8.00am BST THE VOLKSWAGEN SCANDAL COULD EVEN HURT GROWTH ACROSS EUROPE, IF OTHER CARMAKERS ARE DRAWN IN. Rabobank strategist Jane Foley believes it could even hurt the value of the euro - if investors are scared away from Europe. We don’t know that other carmakers aren’t going to be drawn into this scandal, we need to see how this develops. It has the potential to spread. If it does, it certainly could affect European growth, and then the euro too. 7.51am BST THE VOLKSWAGEN SCANDAL COULD BECOME THE BIGGEST THREAT TO GERMAN ECONOMIC GROWTH, IF CONSUMERS LOSE FAITH IN ITS CARS. ING chief economist Carsten Brzeski argues that the whole country could suffer: “All of a sudden, Volkswagen has become a bigger downside risk for the German economy than the Greek debt crisis.” “If Volkswagen’s sales were to plunge in North America in the coming months, this would not only have an impact on the company, but on the German economy as a whole.” The German economy has defied Greece, Eurozone stagnation and China, but can it also stomach a possible fall in VW sales? 7.33am BST GOOD MORNING. “Germany’s entire auto industry is at stake here. And when it’s at stake, almost everything’s at stake.” Guardian front page, Thursday 24 September 2015: Scandal claims VW chief as lawyers circle pic.twitter.com/jYMQqIPc5X Related: Volkswagen chief quits over emissions scandal as car industry faces crisis Continue reading...
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