The company has allotted $7.3B to cover the costs of making the cars comply with pollution standards. It could face fines of up to $18B in the US.
The US Environmental Protection Agency has said a secret "defeat device" installed by Volkswagen tricked emissions tests and allowed the cars to spew up to 40 percent more pollution than allowed under the law, posing a threat to public health.
Winterkorn released a statement to express shock over the scandal and its global scale.
He took responsibility for the "irregularities" and submitted his resignation "in the interests of the company even though I am not aware of any wrongdoing on my part."
Winterkorn believes his departure clears the way for the company to make a fresh start. He said of the automaker's future: "The process of clarification and transparency must continue. This is the only way to win back trust. I am convinced that the Volkswagen Group and its team will overcome this grave crisis.”
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