Audi boss arrested over Diesel scandal

Volkswagen
Volkwagen profits are up for the quarter, as emissions controversy begins to settle.

Audi’s (ETR: NSU) chief executive has been arrested in connection to the German carmaker’s emissions test cheating scandal.

Rupert Stadler was taken into custody on Monday and is the most senior official detained over the investigation into the scandal.

“We confirm that Mr Stadler was arrested this morning. The hearing to determine whether he will be remanded is ongoing,” said a Volkswagen spokesperson.

The Munich prosecutor’s in a statement: “As part of an investigation into diesel affairs and Audi engines, the Munich prosecutor’s office executed an arrest warrant against Mr Professor Rupert Stadler on June 18, 2018.”

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The scandal emerged three years ago when Volkswagen, which owns Audi, was found to be using illegal software to cheat US emissions tests on diesel engines.

Initially, the devices were only found in Volkswagen vehicles but the Audi subsidiary has also been caught up in the scandal.

Last month, Audi admitted that an additional 60,000 A6 and A7 models with diesel engines also have issues with emission software.

Stadler is being detained and will be questioned on Wednesday once he has spoken to his lawyers.

A total of 20 people are facing suspicion in the Audi investigation.

The car manufacturer has so far pleaded guilty to criminal charges in the US. Nine managers including the former CEO Martin Winterkorn have been charged.

VW engineer James Liang was jailed for 40 months last year and was also fined $200,000 after he admitted to helping to design software to cheat the US emission tests.

Audi said last week that it was “cooperating with the authorities” in the probe.

Shares in the group were down 2.1 percent at 157.66 euros in Frankfurt trading.