Audi chief exec Rupert Stadler arrested

The reason for the arrest was because of a possible risk that he could suppress evidence in the ongoing investigation of alleged fraud and false advertising, according to the Munich prosecutors office, stated a Reuters report. "The hearing to determine whether he will be remanded is ongoing", a spokesman for parent company Volkswagen said.

"Audi CEO Rupert Stadler was provisionally arrested this morning", the company said in a statement. Stadler was detained on Monday.

The move follows a search last week of Stadler's private residence, ordered by Munich prosecutors investigating the manager on suspicion of fraud and indirect improprieties with documents.

News of the arrest comes as VW's new group CEO Herbert Diess is trying to introduce a new leadership structure, which includes Mr Stadler, and speed up the group's shift towards electric vehicles in the wake of its emissions scandal.

Volkswagen admitted that almost 600,000 cars sold in the United States were fitted with "defeat devices" created to circumvent emissions tests.

Cars sold in Europe by Volkswagen group were believed to be equipped with a software that automatically turned off emissions controls during driving, flouting several pollution control laws.

It said it had installed software in 11 million diesel cars worldwide that could tell when they were being tested and cut their emissions.

Autocar is due to receive an official comment from Audi imminently. The same goes for Munich prosecutors and Stadler.