Michael Horn

VOLKSWAGEN Group of America chief executive Michael Horn left the company this week “by mutual agreement” in a move that comes six months after the German car-maker was found to have cheated on diesel emissions testing in the US.

The company said Mr Horn had left “to pursue other opportunities, effective immediately” and that Hinrich Woebcken, who was recently announced as the incoming head of the North America region and chairman of Volkswagen Group of America, will assume the role of president and CEO on an interim basis.

Mr Horn, 54, has worked for Volkswagen for more than 25 years and had been in the key position in America since January 2014.

He played a central role in managing the unfolding crisis in which Volkswagen became embroiled in September last year when the US Environmental Protection Agency and California Air Resources Board revealed they had found VW and Audi diesel-powered cars with software that circumvents EPA emissions standards, emitting up to 40 times more than allowed during normal driving situations.

Volkswagen brand chief executive Herbert Diess said he wanted to personally thank Mr Horn “for the great work he has done for the brand and with the dealers in the United States”.

“During his time in the US, Michael Horn built up a strong relationship with our national dealer body and showed exemplary leadership during difficult times for the brand,” he said in a statement.

Leadership: VW’s global management has praised Michael Horn upon his departure from the company for the “great work he has done for the brand and with the dealers in the United States”.

Volkswagen’s North American sales have dropped markedly since the emissions scandal broke last year, and the company has yet to develop “approved remedies” for affected diesel vehicles to the satisfaction of US authorities, unlike Australia where a recall is now underway.

In January, the US government also commenced legal action against the VW Group over the issue, alleging that the “illegal defeat devices have resulted in thousands of tons of excess NOx (oxides of nitrogen) emissions in California, a state where more than 12 million people live in areas that exceed air quality standards set to protect public health”.

The federal justice department, on behalf of the EPA, is reportedly seeking up to $US46 billion ($A61.6b) for alleged Clean Air Act violations.

A fortnight after this lawsuit was filed, Mr Woebcken was appointed head of North America (effective April 1), assuming responsibility for all activities of the VW passenger cars brand in the region, which includes the US, Mexico and Canada, and was the subject of a major restructure in the wake of the emissions crisis.

The position was originally meant for one of Volkswagen’s top global executives, Winfried Vahland, who was previously chairman of VW’s Czech brand Skoda but resigned in October rather than take up the job after disagreements over the company’s strategy in the region.

Mr Horn joined Volkswagen in 1990, working on company and brand strategy for seven years before assuming responsibility for sales in north-western Europe in 1997. He rose to head of sales and marketing for premium-class vehicles of the VW brand in 2001, and three years later became head of sales for Europe.

In 2009 he was appointed head of Volkswagen global aftersales, subsequently relocating to the US at the end of 2013 to succeed Jonathan Browning, who had resigned from the group and was returning to the UK.

Mr Horn’s departure comes a week after Ron Stach was appointed vice-president of sales for the VW brand for Volkswagen of America, reporting to chief operating officer Mark McNabb and replacing Mark Barnes, who has assumed responsibilities as chief operation officer at Bentley of the Americas (part of the same group).

By Terry Martin