Audi CEO arrested in emissions-cheating investigation

Rupert Stadler, CEO of Volkswagen's Audi brand, was arrested by German authorities June 18 for his role in Volkswagen's plot to cheat on U.S. admissions tests, according to Reuters.

In September 2015, Volkswagen admitted to using illegal software to cheat on admissions tests for their diesel engines. Mr. Stadler is the highest-ranking company official to be taken into custody. German officials say he was brought in due to worries that me might get in the way of their investigation into the scandal.

"There were clear signs that there was to be an effort to influence people and other suspects. Therefore we issued an immediate arrest warrant," Stephan Necknig, a spokesman for the Munich prosecutor's office, told Bild, according to Reuters.

Mr. Stadler's arrest created a leadership vacuum for Audi and Volkswagen, who conducted emergency crisis-management talks after the arrest to find a temporary replacement. The company appointed sales executive Abraham Schot as CEO, according to Reuters.

Martin Winterkorn,  former CEO of the Volkswagen group, stepped down after revelations of the cheating scandal, but Mr. Stadler remained at the company and was even promoted by new Volkswagen CEO Herbert Diess as part of the company's reorganization.

Editor's note: This article was updated June 19 at 9:05 am CT to reflect VW's pick for interim Audi CEO.

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