VW's Isolation Increases as European Governments Condemn Actions
- CEO Winterkorn making plea to board members to keep post
- Porsche and VW brand chiefs seen as possible replacements
VW Diesel Scandal Widens as CEO Heads for Board Showdown
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Volkswagen AG’s crisis deepened, with Fitch announcing a possible ratings cut and an institutional investor reducing its holdings as investigations mount over revelations the German carmaker rigged diesel engines to pass U.S. pollution tests.
Fitch Ratings service said the decision to put VW on watch for a downgrade reflected the potential “reputational damage” for the group, and how the scandal is “another illustration of our assessment of the company’s fairly weak corporate governance.” Union Investment in Germany reduced its VW holdings across all asset classes, citing the uncertainty of the unfolding events.