Audi In Crisis Mode As CEO Arrested 06/18/2018

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

VW and Audi directors were discussing the leadership crisis in separate meetings on Monday.

The emissions scandal first emerged in 2015.

As NPR has reported, six Volkswagen executives were indicted on May on charges of conspiracy and fraud in connection with the years-long emissions scheme, including former CEO Martin Winterkorn.

Volkswagen has pleaded guilty to criminal charges in the United States.

The prosecutor could not comment further due to ongoing investigations.

The top executive at Audi was detained at his Ingolstadt home on Monday in the early morning hours.

Audi chief executive Rupert Stadler has been arrested by Munich prosecutors in relation to the ongoing Dieselgate investigations. Recently, the company admitted that 60,000 A6 and A7 diesel models have "emission software issues".

Police searched Stadler's home last week, after prosecutors searched homes of current and former Audi employees earlier this year.

Stadler has held onto his post mainly thanks to the backing of members of VW's controlling Porsche-Piech families.

Audi, Volkswagen's luxury vehicle division and a major revenue source, has been accused of having sold at least 210,000 diesel-engine cars in the United States and Europe fitted with cheating software for emissions.

Prosecutors said the arrest was justified because of the "risk of concealment of evidence". Two are serving prison terms; Winterkorn and the others remained in Germany and are unlikely to be extradited.

But investigations are continuing elsewhere. The raid occurred around the same time that VW Group agreed to pay a €1 billion ($1.2 billion) fine for "inadequate oversight" in its powertrain department.

Audi and Volkswagen confirmed that Stadler was detained on Monday and said he still had a presumption of innocence.

Audi is a division of Volkswagen.

But Dudenhoeffer said VW's supervisory board may want to reconsider its stance when it meets today. Audi admitted in November 2015 that its vehicles also contained the illegal "defeat devices" that allowed parent company Volkswagen to circumvent emissions regulations and sell vehicles that were worse for the environment than promised.

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