Volkswagen CEO likely to receive $67 million exit package

Volkswagen CEO likely to receive $67 million exit package
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Former Volkswagen Group CEO Martin Winterkorn is likely to receive a $67 million exit package after resigning amid revelations VW has been circumventing federal air pollutant emission standards for years, The Washington Post reports. 

Winterkorn stepped down earlier this week after the Environmental Protection Agency (EPA) accused the German automaker of selling about 482,000 vehicles since 2008 that violate the Clean Air Act due to software installed on the vehicles that activates required air pollution protections only during emissions tests.

Winterkorn’s exit package will include a $32 million pension and likely a large severance payment, according to the report.

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The departing Volkswagen chief is being replaced by Porsche CEO Matthias Müller, who has led the VW luxury subdivision since 2010. 

Volkswagen has been embroiled in scandal since the EPA revealed last Friday that the company programmed vehicles to trick emissions testers into believing that its diesel cars released a much lower volume of nitrogen oxide than they actually do.

A “defeat device” in the vehicles made it so they would pass emissions tests. But in regular driving, the vehicles emitted up to 40-times more pollution.

Volkswagen has admitted to the accusations.

The EPA has said Volkswagen could face up to an $18 billion fine for its pollution violations.