The dieselgate scandal continues to hurt Volkswagen as another executive is leaving the company.

Volkswagen USA announced that CEO Michael Horn is leaving his post "effective immediately." Horn is said to pursue other opportunities after reaching a mutual agreement with Volkswagen AG.

On an interim basis, Volkswagen said that Hinrich J. Woebcken, who was recently announced as the new Head of the North American Region and Chairman of Volkswagen USA, will assume the role of president and CEO of Volkswagen USA.

Last October 2015, Horn appeared in front of the U.S. House of Representatives’ Energy and Commerce Committee and said that the illegal defeat device was "not a corporate decision." He claims that a "couple of software engineers" installed the device on 11 million Volkswagen cars.

Michael Horn (54) assumed the role as president and CEO of Volkswagen Group of America in January 2014 and has over twenty five years of experience with the Volkswagen Group. Prior to his current role, Horn served as the Global Head of After Sales at Volkswagen AG (VW).

Previously we reported that Volkswagen installed a defeat device that reduces nitrogen oxide (Nox) at up to 40 times in order to fulfill emissions standards during lab testing.

The Environmental Protection Agency explained that the illegal software automatically detects if the vehicle is undergoing emissions testing. Then, the software switches off during "real-world" driving.

As a result, Volkswagen is being sued by U.S. authorities and could face a fine of up to USD 18 billion.  

Volkswagen Philippines' Chief Operating Adviser Klaus Schadewald said last September 2015 that "cars sold by Volkswagen Philippines have no software installed which alters emissions output."

Schadewald added that Volkswagen cars sold in the country fully comply with the Philippine emissions standards and regulations.