Martin Winterkorn, Volkswagen’s chief executive, has been sacrificed in an act of contrition to the shareholders, regulators and lawyers circling the German car conglomerate. His departure will matter little to the long-term fortunes of VW without an overhaul of the company’s governance.

The emissions-rigging scandal, which is being talked about as a corporate failure on the scale of Enron or WorldCom, extends beyond the CEO. A company which has admitted to a flagrant violation of global rules and went to such extensive lengths to hoodwink officials has bigger questions to answer than just who takes the blame. Looking at those with whom Winterkorn shared the top table might be one place to start.

The problems at VW extend beyond Winterkorn. His failures are both a symbol and a product of a system which has proved itself dysfunctional. Removing the top brass cannot be the end of the matter.

bbabo.Net