Audi CEO Rupert Stadler arrested in diesel emission case

Irving Hamilton
June 18, 2018

German authorities have detained the chief executive of Volkswagen's luxury division Audi, Rupert Stadler, as part of a probe into manipulation of emissions controls.

In the Reuters report, Stadler had his contract extended in 2017 and was named as a suspect alongside another unnamed member of Audi's board of management.

Munich prosecutors, who have been investigating Audi's role in the 2015 scandal, confirmed they arrested Rupert Stadler in the Bavarian capital.

A judge in Germany has ordered that Mr Stadler be remanded in custody, it said, to prevent him from obstructing or hindering the diesel investigation.

The Munich prosecutors said Mr Stadler's arrest was not made at the behest of U.S. authorities.

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VW admitted in September 2015 to using illegal software to cheat USA emissions tests on diesel engines, sparking the biggest crisis in the company's history and leading to a regulatory crackdown across the auto industry.

Audi has been caught up in the diesel emissions scandal that has plagued VW.

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

Investors have accused the company of informing investors too late about the probe, a view the carmaker has contested, saying it couldn't have known the issue would balloon as it did.

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