Volkswagen’s pollution cheating scandal in the US will not have an impact on its commencement of operations in Sri Lanka, a senior official of the Board of Investment in Sri Lanka (BoI) said last week.
Volkswagen International suffered a major setback on Wednesday when its Chief Executive in the US Martin Winterkorn resigned over a pollution cheating scandal.
The scandal had sparked a US criminal investigation and worldwide legal action with unfathomable financial consequences for the auto giant, the AFP reported.
Volkswagen had recently entered into an agreement with the Board of Investment of Sri Lanka (BoI) on opening a plant in Kurunegala.
However, Chairman of the BoI, Upul Jayasuriya told The Nation Gain that the issue would not affect the company’s plans in Sri Lanka. “These are totally different. The agreement has already been signed and work would commence as planned,” Jayasuriya said.
The automobile giant was in hot waters after it was found that its cars were installed with a software that could be used to cheat during emission tests. According to international reports, Volkswagen admitted that 11million of its diesel cars were equipped with the software. “I am shocked by the events of the past few days. Above all, I am stunned that misconduct on such a scale was possible in the Volkswagen Group, “Winterkorn said in a statement prior to his resignation.
“Volkswagen needs a fresh start — also in terms of personnel. I am clearing the way for this fresh start with my resignation.”
The scandal resulted in the carmaker’s market shares plummeting more than 20 percent on September 21.