Volkswagen suspends former diesel engine boss

Scandal-hit German automobile giant Volkswagen has suspended another senior engineer and head of its largest transmission plant in connection with its investigation into who was responsible for cheating on diesel emissions tests, reported the Wall Street Journal on Thursday. 

Falko Rudolph, head of VW's factory in Kassel, Germany, has been suspended after being questioned by internal investigators last week, reports said. Rudolph was chief of Volkswagen’s diesel-engine development from 2006 to 2010 and is considered to be the father of the company’s dual-clutch transmission.

Rudolph is the fourth senior engineer to be axed after the automaker started its investigations in the scandal which wiped out nearly a third of the company’s net worth and led to intense pressure on the company.

Already Christian Klinger, the VW Group's boss of sales and marketing and aftersales, has left the firm "due to differences with regard to business strategy". VW confirmed Klinger's departure was unrelated to the emissions scandal. Former Skoda boss Winfried Vahland has also left the firm, and won't be taking up his new role as VW's US chief.

Additionally, several VW executives are also reported to be on official leave from the company, with Audi R&D boss Ulrich Hackenberg, VW R&D chief Heinz Jakob Neusser and Porsche board member Wolfgang Hatz all said to be suspended – although this has yet to be confirmed.

Meanwhile, Volkswagen chief executive Matthias Müller on Thursday told top managers that changes to the company’s structures and culture announced in the wake of the emissions crisis are to empower regional managers to become more autonomous rather than waiting for headquarters in Wolfsburg to make decisions.

In another significant development, Volkswagen said that it would recall around 8.5 million vehicles affected in the European Union following an order from Germany's KBA automotive watchdog, which is taking the lead for other national EU regulators.

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