Audi chief exec arrested over Dieselgate vehicle emissions scandal

Audi CEO detained in diesel emissions case

Audi CEO Rupert Stadler Arrested Over Emissions Test Cheating Scandal

Stadler joined Audi in 1990, and became CEO in 2007. Audi's boss has now been detained over concerns he might be tempted to suppress evidence related to the diesel emissions cheating. Stadler has denied any involvement.

Volkswagen admitted that almost 600,000 cars sold in the USA were fitted with "defeat devices" created to circumvent emissions tests. The luxury carmaker is also being investigated for allegations of fraud and illegal product promotion.

Volkswagen Group has announced that German authorities have detained Rupert Stadler, CEO, Audi, on Monday June 18, 2018.

Audi has not yet commented on the matter. The executive was arrested at his home in Ingolstadt. Martens led a diesel task force at Audi, which was set up to coordinate the handling of the crisis with the parent company.

A spokesperson for Volkswagen confirmed his arrest to Reuters, saying, "We confirm that Mr Stadler was arrested this morning".

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It remains to be seen how long Stadler remains in police custody and whether he's able to remain in his post during his detention.

The dramatic development comes a week after Munich prosecutors raided Stadler's home after charging him with fraud and the falsification of documents that allowed diesel vehicles equipped with cheating software to be sold to European customers. That other member is said to be Audi's head of purchasing Bernd Martens, according to a person familiar to the investigation, who declined to be named because prosecutors had yet to disclose the name, Reuters reported.

The diesel investigation, conducted by prosecutors in Munich and Braunschweig and coordinated with the U.S. Department of Justice, has shifted to Audi and Porsche in the last two years. According to reports, the entire scandal has taken a heavy toll on the German vehicle manufacturers as it has cost it about 25 billion euros in buybacks, compensation and regulatory fines.

But investigations are continuing elsewhere. Munich's authorities last week slapped VW with a €1B (roughly $1.2B) fine stemming from the scandal.

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