Peter Hartz resigns over scandal issues at Volkswagen

Peter Hartz resigns over scandal issues at Volkswagen

The aftereffects of the reports of scandals at the German auto giant Volkswagen are not ceasing. The latest big name representing the company to resign is the personnel chief of German carmaker Volkswagen, Peter Hartz. The accusations include claims that the leaders at the company were bribed with holidays and prostitutes for awarding contracts in the newer markets the company is targeting to launch its products in.

Peter happens to be a close political adviser to the Chancellor Gerhard Schroeder and has been denying all the allegations against him in the scam that has hit the company. He is the third individual after Klaus Schuster, a former director of VW’s Skoda unit, and Klaus Volkert, VW’s top worker representative to resign after being accused of conducting unlawful business activities.

This scandal has already damaged the reputation of the company in the European market and the company’s plans to start its operations in India have been put on hold. It has also led to questions being raised on the consensus-based system of corporate management, known as co-determination in Germany.

Peter Hartz said in a statement after his resignation: “This is about more than just me. This is about the reputation of Volkswagen, for which I feel especially responsible. To prevent any further damage to the company, I have offered my resignation to the supervisory board today.”