Breaking News: Volkswagen CEO Resigns after Scandal

Courtesy of NBC New York

The German car manufacturer, Volkswagen, will be saying "Auf Wiedersehen" (goodbye) to Chief Executive, Martin Winterkorn.

Winterkorn announced his resignation on Wednesday after the growing emissions scandal erupted this past Friday.

Volkswagen is currently under heavy scrutiny for installing falsified computers. The system would turn on the top level emission controls in the cars, giving a false report about the level of emissions coming from the exhaust.

The cars were actually releasing 40 times the allowed level of air pollution. The pollutants released from the cars contains nitrogen oxide, which at high levels can cause inflammation of airways.

Winterkorn has been with the company since 2007, two years prior to the beginning of the falsified emission tests, which began in 2009.

The scandal escalated Tuesday when the company announced that over 11 million diesel cars were affected by the falsified tests worldwide.

Volkswagen has set aside an estimated 7.3 million dollars to cover the recalls and damages made after the scandal.

CNN Money reports that the company could face criminal charges such as civil and criminal fines that could equate to up to billions of dollars. So far, the German car company is facing 34 federal lawsuits.

The car manufacturer not only owns Volkswagen, but Audi and Porsche as well.