Scope expands to include Audi CEO

FRANKFURT, Germany — German prosecutors said they have expanded their probe into manipulation of emissions controls at Volks wagen’s Audi division to include Audi’s CEO, Rupert Stadler.

Munich prosecutors said Stadler’s private residence was searched Monday along with that of another division manager whose name was not released.

A statement issued Monday said Stadler was being investigated on suspicion of fraud and indirect improprieties with documents.

The probe of Stadler focuses on cars sold in Europe that were believed to be equipped with software that turned emissions controls off during regular driving.

Volkswagen pleaded guilty to criminal charges in the United States, and nine managers, including former CEO Martin Winterkorn, were charged there. Two are serving prison terms; Winterkorn and the others remained in Germany and are unlikely to be extradited.

The focus on Stadler threatens one of Volkswagen’s most profitable units. Audi luxury cars, which compete with BMWs and Mercedes, accounted for 14 percent of the vehicles Volkswagen sold in the first three months of 2018 but 28 percent of the operating profit.

Stadler denied wrongdoing and resisted calls by shareholders to resign despite evidence the illegal software originated in his unit and people who reported directly to him were involved. There was no indication from Audi or Volkswagen on Monday he would resign or be forced out.

Volkswagen admitted the software used to conceal excess diesel emissions was first developed at Audi, which Stadler has overseen since 2007. Audi diesels were also among some 11 million vehicles equipped with the software, which was designed to ensure they released lower levels of emissions during laboratory testing than during normal driving conditions.

Investigators raided Audi offices and employees’ homes several times in recent months, and they have said former members of the management board were suspects, though until Monday they had excluded Stadler. He is suspected of fraud in connection with the sale of Audis in Europe that were equipped with illegal software, as well as false advertising, prosecutors said in a statement.