German authorities have detained the chief executive of Volkswagen's luxury division Audi, Rupert Stadler, as part of a probe into manipulation of emissions controls. The reason for the arrest was because of a possible risk that he could suppress evidence in the ongoing investigation of alleged fraud and false advertising, according to the Munich prosecutors office, stated a Reuters report.
A German judge has ordered that Stadler be remanded in custody.
"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.
"The presumption of innocence remains in place for Mr. Stadler", Audi said.
The so-called dieselgate emissions scandal first came to light in September 2015.
Martin Winterkorn, the former chief executive officer of Volkswagen, was indicted in May by United States prosecutors.
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The move is an extension of the emissions scandal that has rocked Volkswagen since 2015 and led to billions in fines, the arrest of executives and the indictment in the USA of its former CEO.
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.
It was in September 2015 when VW admitted to using illegal software to cheat US emissions tests on diesel engines.
The executive was arrested at his home in Ingolstadt in the early hours on Monday, they said. Stadler himself was not immediately available for comment. He was named a suspect by the Munich prosecutor's office alongside an unnamed member of Audi's board of management.
German prosecutors had earlier confirmed that an arrest warrant issued to his name is based on "concealment of evidence" after conducting a raid at his house last week. 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.