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Audi CEO, Rupert Stadler, Arrested in Germany for Potential Evidence Tampering Audi involvement speculated in Volkwagen's ongoing Deiselgate emissions scandal.

By Madison Semarjian

Opinions expressed by Entrepreneur contributors are their own.

Bloomberg | Getty Images

The CEO of luxury automobile manufacturer, Audi, was arrested on Monday in Germany for potential involvement in parent company, Volkswagen's, diesel emissions scandal. Rupert Stadler, Audi CEO, was rumored to tamper with evidence that showed Audi's role in Volkswagen's violation of the Clean Air Act.

The arrest takes place only days after Germany imposed a $1.2 billion fine on Volkswagen for manipulating diesel emission test results. Volkswagen admitted to producing millions of engines with "defeat devices" to misrepresent emission toxicity levels. Last month, Audi recalled over 60,000 A6 and A7 models for "irregularities." 850,000 Audi's were recalled the previous year.

Stadler, who has worked for Audi since 1990, is the highest ranking Volkswagen executive to be arrested in connection to the ongoing emission violations. Martin Winterfork, former CEO of Volkswagen, was indicted last month for wire fraud and conspiracy to defraud American customers. Deiselgate has cost Volkswagen over $30 billion recalls and legal settlements. Customer trust in Volkswagen was already shaky, and Stadler's arrest resulted in a 2.6% drop in share price in Frankfurt.

Stadler will speak to law enforcements on Wednesday after he has spoken with his lawyers. According to prosecutors, Stadler could be released within the week if he cooperates.

Madison Semarjian

Founder of Mada

Madison Semarjian is the founder of Mada, an outfit curation app.

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