Audi CEO loses appeal to be released from jail

Rupert Stadler

Rupert Stadler was arrested last month

Stadler launched an appeal to be freed from custody after being arrested amid Dieselgate investigations

Jailed Audi CEO Rupert Stadler will remain in prison after an appeal to be released was rejected by the Munich court. 

“The Chamber emphasises that danger of obstructing justice remains. The release of the accused from custody was therefore rejected,” it said in a statement, reports Reuters.

Stadler remains in custody, following his arrest in June in connection with the Dieselgate emissions scandal. He is one of a number of Volkswagen Group Executives, past and present giving evidence in an Stuttgart court case between September and November.

Autocar is awaiting comment from Audi.

Mooted replacement

Stadler will be replaced by BMW’s former director of purchasing, Markus Duesmann, on 1 January, according to reports in Germany.

Newly appointed Volkswagen Group board member Duesmann, reports Automobilwoche, will take the helm from January 1 2019, taking over from interim CEO and sales and marketing boss, Abraham Schot. Audi has not commented on the matter.

Announcing Duesmann’s appointment to the Volkswagen Group board last week, the group said in a statement: “Mr Duesmann, currently board of management member for purchasing and supplier network at BMW, will take up his new position as soon as he is able to do so. An agreement to this effect has already been signed”. The statement described Duesmann as “one of the automotive industry’s most experienced and distinguished experts,” with “a wealth of knowledge in different areas of the industry”. Duesman is said to be an expert in engine development.

Reaction to arrest

The arrest of Stadler earlier this year following an investigation on charges of fraud and misrepresentation as part of the Dieselgate emissions scandal was a “massive shock” for Volkswagen Group boss Herbert Diess, who described his colleague as a “problem solver”.

Diess told German newspaper Bild am Sonntag: “The arrest of a CEO of a major car brand – that’s never happened before.”

Audi has temporarily placed Schot, its sales and marketing boss, at the helm. But a source, speaking to Automotive News Europe, said that the 55-year-old Stadler was not expected to return to the company, regardless of outcome. Since his arrest, Stadler, who was in charge of Audi for eight years, has since been placed on leave by Audi.

“Should the accusations of the state prosecutors prove to be true, then it’s a clear decision,” said Diess.

Reasons for arrest

Stadler’s detention came after German police and members of the Munich public prosecutor’s office raided his private residence in Germany.

German media reports suggested evidence obtained in the recent questioning of other former Audi officials link Stadler to possible diesel emissions manipulation from 2012 onwards. 

As a reason for Stadler’s arrest, the Munich public prosecutor’s office cited “evidence suppression”. It added: “We cannot comment on the substance of our background in the light of the ongoing investigations. For Mr Stadler, the presumption of innocence continues to apply.”

Stadler has continuously denied any wrongdoing relating to the Dieselgate scandal.

More content:

Dieselgate: Volkswagen accepts £880 million fine from German court

Dieselgate: Stuttgart court orders testimonies from VW executives

Source: Autocar Online

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