Audi chief detained in Germany over diesel emissions scandal
German authorities have detained the chief executive of Volkswagen’s Audi division, Rupert Stadler, as part of a probe into the manipulation of emissions controls.
The move yesterday followed a search last week of Mr Stadler’s private residence, ordered by Munich prosecutors investigating the manager on suspicion of fraud and indirect improprieties with documents.
“Audi CEO Rupert Stadler was provisionally arrested this morning,” the company said in a statement.
It said shortly afterwards that a judge had ordered him to be kept in custody pending possible charges at prosecutors’ request.
The company said that it could not comment further due to the ongoing investigation, but stressed that “the presumption of innocence remains in place for Mr Stadler”.
German news agency dpa reported that prosecutors decided to seek Mr Stadler’s arrest due to fears he might try to evade justice.
A former head of Audi’s engine development unit has already been detained by investigaters.
A total of 20 people are under suspicion in the Audi probe, which focuses on cars sold in Europe that were believed to be equipped with software which turned emissions controls off during regular driving.
Volkswagen has 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.
Audi said in a statement last week that it was “co-operating with the authorities” in the probe.
Mr. Stadler is the highestranking Volkswagen executive still in his post to be identified as a suspect in the diesel emissions case.
Carl Tobias, a professor at the University of Richmond School of Law in Virginia, said it was a mistake for Volkswagen to apply the standard used in a courtroom when determining whether someone was fit for top management. “They are mistaken by using this as an excuse,” he said. “It seems like the board and the company should be taking into account the terrible publicity they continue to have. It seems very late to think about replacing him.”
According to German newspaper Sueddeutsche Zeitung, VW’S supervisory board has nominated Bram Schot to be the interim chief executive at Audi. However, Audi’s supervisory board has yet to sign off on the nomination. Volkswagen shares were down 2.1 per cent at €157.66 in Frankfurt trading.