Business

Audi names new leader after CEO arrested

Posted June 19, 2018 7:29 a.m. EDT

— Audi has tapped its top sales executive to lead the company temporarily after the CEO was arrested.

The luxury German automaker announced Tuesday that Abraham Schot would take the reins after CEO Rupert Stadler was arrested as part of an investigation into emissions cheating.

Audi said Stadler asked to be released from his positions on the management boards of Audi and its parent company, Volkswagen.

Munich prosecutors said Monday that Stadler, who has worked for Volkswagen since 1990, had been detained because of concerns he could influence witnesses in an ongoing fraud investigation.

He is the highest-ranking Volkswagen executive to be arrested in connection to a costly diesel emissions scandal that burst into public view in 2015.

Shares in Volkswagen dropped nearly 3% on Tuesday.

Audi said it had agreed to suspend Stadler "until the circumstances that led to his arrest have been clarified."