Martin Winterkorn, the chief executive of Volkswagen, has resigned just days after it emerged that the company had cheated emissions tests in the US.
Winterkorn, who has run the company since 2007, said at a press conference following a day of board deliberations that the company needed a fresh start.
"I am clearing the way for a this fresh start with my resignation," Winterkorn said. "I am shocked by events of the past few days. Above all, I am stunned that misconduct on such a scale was possible in Volkswagen Group."
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He denied any wrongdoing on his part. Volkswagen admitted on Friday that it had been rigging emissions tests to comply with regulations since 2009.
As many as 11 million vehicles worldwide could have been fitted with so-called "cheat switches" that mask the true level of emissions they emit during tests.
The US Environmental Protection Agency found that the affected VW and Audi cars emit 10 times to 40 times the legal limit of harmful nitrogen emissions during normal driving.
Business news in pictures Winterkorn had already issued multiple apologies for the scandal, which has triggered calls for investigations in Europe and Asia.
Volkswagen has seen its share drop 39 per cent in value since the beginning of the week.
The total value wiped off the company is now close to the value of French rivals Renaut and Pergeot combined.
Volkswagen has put aside the €6.5 billion to cover the costs of the scandal.
It said it working “at full speed” to understand how the falsification efforts began.
