London
CNN
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Volkswagen has announced the termination of its association with suspended Audi CEO Rupert Stadler, who has been in detention since June due to his involvement in an emissions investigation that is still ongoing.
In a statement released on Tuesday, the carmaker confirmed that Stadler has stepped down from his position as the Chairman of the management board of Audi and has also exited the board of management of Volkswagen, as he is currently unable to perform his duties due to his ongoing pretrial detention.
The statement further clarified that Stadler wishes to focus on his defense proceedings as he remains under pretrial detention.
The reason behind Stadler’s detention is the fear that he could collude with witnesses in the ongoing emissions investigation. Stadler’s arrest makes him the highest-ranking Volkswagen executive in the emissions probe so far.
Following Stadler’s detention, Audi appointed its top sales executive to lead the company while reiterating that Stadler would be considered innocent unless proven guilty.
In 2015, it was revealed that Volkswagen had installed software in millions of diesel engines to manipulate emissions test results, leading to a plunge in the company’s share price and a loss of consumer and regulator trust in diesel technology. Volkswagen has already paid more than $30 billion in settlements and penalties relating to the scandal.
As part of a separate announcement, Volkswagen has introduced incentives to encourage customers in Germany to trade-in older diesel models for cleaner cars.
The company’s former CEO, Martin Winterkorn, was charged by US prosecutors in May with conspiracy to defraud American customers and violate the Clean Air Act. He was indicted after the diesel scandal came to light. Matthias Mueller, who replaced Winterkorn as CEO, resigned earlier this year. Volkswagen veteran Herbert Diess now heads the company.
At an April press conference, Diess admitted that Volkswagen had “lost a great deal of trust”. He emphasised that the company needed years to improve public confidence in its products.
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
