Fidelity bank banner Bayelsa State banner
Audi CEO arrested in Germany over diesel scandal

By Edward Taylor, Jan Schwartz on 18/06/2018

Share on facebook Yahoo mail icon Gmail icon Share on Google+

Views: 1,869

•Audi CEO Rupert Stadler
•Audi CEO Rupert Stadler

Volkswagen (VOWG_p.DE) was holding crisis talks on Monday to find a stand-in boss for its Audi brand, a source familiar with the discussions said, after German authorities arrested Audi CEO Rupert Stadler as part of a probe into emissions test cheating.

Stadler is the most senior company official to be detained so far since Volkswagen (VW) admitted in September 2015 to using illegal software to rig U.S. emissions tests on diesel engines.

Munich prosecutors, who widened their probe into Audi earlier this month, said Stadler was being held due to fears he might hinder their investigation into the scandal, plunging VW into a leadership crisis.

“We need to find a solution for Audi’s leadership for the time when he is not here,” the source familiar with the talks said about Stadler’s position. “We will comment on this later.”

VW and Audi directors were discussing the leadership crisis in separate meetings on Monday, with one source saying Dutchman Bram Schot was the front-runner to become interim Audi chief.

Germany’s Sueddeutsche Zeitung newspaper said VW’s supervisory board had already picked Schot for the job and only needed the formal approval of Audi’s directors. VW denied any such appointment had been made.

VW has set aside around $30 billion to cover fines, vehicle refits and lawsuits since its “dieselgate” scandal broke, and has announced plans to spend billions more on a shift to electric vehicles as it seeks to rebuild its reputation.

Whereas group CEO Martin Winterkorn resigned in the days after the cheating was disclosed, Stadler has remained in post and was this year promoted by new VW boss Herbert Diess in an overhaul aimed at speeding up the group’s reforms.

“His arrest is another low point in VW’s diesel saga,” said Evercore ISI analysts, who have criticized the group for a slow pace of reform. “Almost three years after the diesel scandal broke, it takes police to take action against the Audi CEO.”

The United States filed criminal charges against Winterkorn in May, but he is unlikely to face U.S. authorities because Germany does not extradite its nationals to countries outside the European Union.

The Munich prosecutors said the move against Stadler was not made at the behest of U.S. authorities. The 55-year-old was arrested at his home in Ingolstadt in the early hours on Monday, they said.

“The arrest warrant was made because of a risk that evidence might be suppressed,” Stephan Necknig, a spokesman for the Munich prosecutor’s office, told Reuters Television.

“During a search last week there were signs that the accused may tamper with evidence. To influence other suspects or witnesses, or people who could provide information to the investigating authorities,” he added.

Audi and VW said Stadler was presumed innocent unless proved otherwise. Stadler himself was not immediately available for comment.

At 1409 GMT, VW shares were down 3 percent at 156.08 euros, one of the biggest falls by a European blue-chip stock .FTEU3.

UNDER FIRE

Stadler has been under fire since Audi admitted in November 2015 - two months after parent VW - that it also installed illegal “defeat device” software to cheat U.S. emissions tests.

Munich prosecutors are investigating whether Stadler acted swiftly enough to stop deliveries of manipulated Audi models in Europe once emissions problems had emerged, a person familiar with the matter has told Reuters.

Stadler has held onto his post mainly thanks to the backing of members of VW’s controlling Porsche-Piech families. Before becoming Audi CEO in 2007, Stadler worked as chief of staff to VW’s former chairman Ferdinand Piech.

Earlier this month, Munich prosecutors widened their probe at Audi to include Stadler and another member of Audi’s top management, investigating them for suspected fraud and false advertising.

Stadler’s arrest will raise tensions on VW’s supervisory board, putting at risk a fragile truce between management, labour representatives and board members from the carmaker’s home region of Lower Saxony.

Most of VW’s emissions problems have been in the United States, where a total of nine people have been charged and two former VW executives have pleaded guilty and been sentenced to prison terms.

But investigations are continuing elsewhere. Last week, German prosecutors fined VW 1 billion euros ($1.2 billion) over the scandal.(Reuters)

 

Source News Express

Posted 18/06/2018 7:33:16 PM

 

Share on facebook Yahoo mail icon Gmail icon Share on Google+


 

CLASSIFIED ADS

 

You may also like...
Another 54 soldiers sentenced to death by firing...

Kaduna traffic agency begins crackdown on offenders, releases...

Kidnappers kill 84-year-old ex-lawmaker after collecting ransom

No hope for Nigerians, others sentenced to death...

4 suspected kidnappers arrested in Adamawa

Okonjo-Iweala, Tony Elumelu, Bishop Kukah, others to speak...

Plateau United in blistering form as 2015/16 Nigeria...

Shehu of Borno tasks FG on security in...

Sheriff boycotts PDP caucus meeting

Ngige, APC move to arrest Anambra guber election...

Omo-Agege absent from Senate sitting despite court ruling...

Why I want President Buhari to be impeached...

 

Latest News Nigerian rights group proposes agenda for permanent peace in the Middle East •Details of its “two-lands-in-one-state” solution Rescue team vows to find body of missing Army General 2019: Lagos APC ward chairmen endorse Sanwo-Olu No peace as long as any section of Nigeria is being treated as second class citizens — Turaki Widow bites 8-year old house help, lands in police net Why Gov. Yari cannot anoint a successor, By Ahmed A. Ahmed APC shifts presidential primary Ghana to deport 72 Nigerian ladies Day Delta Central stood still for Okowa, PDP LG Chairman escapes kidnap as bandits abduct 7 in Zamfara Osun election: APC blasts PDP for claiming victory 2019: Bauchi Govt. dismisses Pate’s claims, defends State APC’s adoption of Gov. MA Abubakar, President Buhari

 

Most Read NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (396,761 views) Nigerian female sex addict opens up, says ‘I like it with both men and women’ (376,862 views) Shameless Genevieve Nnaji exposes breasts in public (308,664 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (250,718 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (232,420 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (221,719 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (200,174 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (181,739 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (165,822 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (163,415 views) Lagos plane crash: Journalist releases victims’ names (158,215 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (146,950 views)

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (63) Business & Economy (3,626) Business Verdict (52) Columnists (933) Complaints & Requests (94) Enterprise & Opportunities (207) Entertainment (547) Features (653) Global Business Monitor (301) International (2,432) Interview (165) Live Commentary (28) Love Matters (144) News (39,097) Opinion (1,110) Pidgin (11) Politics (6,726) Religion (872) Sports (1,703) Stock Watch (34) AMA & Al Jazeera Global Update

 

CBN banner

Firstmobile banner

 

 

NEWS EXPRESS TV

Anthony Joshua vs Alexander Povetkin: Highlights

 

APO Group Partner

 

 

CLASSIFIED ADS

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera

Advertisement