London
UJ
—
Volkswagen has terminated its relationship with suspended Audi CEO Rupert Stadler, who has been imprisoned since June due to an emissions scandal investigation.
Stadler has resigned from the management board of Audi’s parent company, Volkswagen (VLKAF), and has stepped down as chairman of the management board for the premium brand, as stated by the automotive group on Tuesday.
“Due to his ongoing pretrial detention, he is unable to perform his responsibilities as a management board member and intends to focus on his defense,” the statement regarding Stadler read.
Munich prosecutors revealed in June that Stadler, who has been with Volkswagen since 1990, was detained because of concerns he could sway witnesses in the ongoing inquiry.
He is the most senior Volkswagen executive to be arrested in connection with the extensive diesel emissions scandal that first came to light in 2015.
Volkswagen previously stated that Stadler is presumed innocent until proven guilty. Following his detention, Audi appointed its chief sales officer to lead the company.
The German automaker has acknowledged that it manipulated millions of diesel engines to cheat on emissions tests.
Diesel vehicles from Volkswagen and its Audi brand deceived clean air regulations utilizing software that made emissions appear less harmful than they truly were.
The scandal caused a drastic drop in its share price and significantly damaged consumer and regulatory trust in diesel technology. Volkswagen has already incurred over $30 billion in costs associated with recalls, legal penalties, and settlements.
In a separate announcement on Tuesday, Volkswagen indicated it would provide incentives to customers in Germany looking to trade in older diesel vehicles for more environmentally friendly models.
Martin Winterkorn, the former CEO of Volkswagen, was indicted by US prosecutors in May. He faces charges of wire fraud and conspiracy to defraud American consumers and violate the Clean Air Act.
Matthias Mueller, who replaced Winterkorn, stepped down earlier this year and was succeeded by Herbert Diess, a veteran from BMW (BMWYY).
Diess acknowledged during a press conference in April that Volkswagen had “lost significant trust” and that rebuilding public confidence in the automaker would take years.
