Rupert Stadler is likely to be forced to step down, for the time being, from his position as chief executive of Audi, according to two people familiar with the situation following his arrest on Monday morning.
The board is expected to vote on the issue today, with Audi boardmember and sales chief Abraham Schot lined up to become interim CEO, two people said and as also reported by German weekly Der Spiegel.
Mr Schot, who joined the VW Group from Mercedes-Benz Italia in 2011, was appointed an Audi boardmember last September.
Mr Stadler’s role at Audi was placed into question when he was arrested by local authorities early on Monday for his alleged involvement in the diesel emissions scandal, just hours before the Volkswagen Group’s supervisory board was scheduled to meet.
The arrest — confirmed by prosecutors and the luxury carmaker — comes just one week after Mr Stadler’s private apartment was raided. He is the highest-ranking executive to be held in custody since the diesel scandal was exposed nearly three years ago.
What Mr Stadler is accused of is not clear. Prosecutors said in a statement he was being held to prevent him from obstructing justice.
Jürgen De Graeve, an Audi spokesman, declined to comment on the ongoing investigation, saying only: “The presumption of innocence continues to apply for Mr. Stadler.”
It is unclear how long Mr Stadler will be held. Two people close to the company said his fate will be front-and-centre at the board meeting on Monday. One said an interim CEO was necessary because in late August Audi is hosting a big event in Brussels to launch the e-Tron, a battery-powered SUV meant to show that the company is ahead of rivals BMW and Mercedes in the race to electrify its fleet.
“It’s the kick-off. They are at a critical time launching their strategy,” this person said. “August is just around the corner. They need all hands on deck.”
In an interview with the FT just weeks before his home was raided, Mr Stadler emphasised that he saw the next few years as an opportunity for Audi to emerge from being the underdog in luxury car sales.
“Our game is, in the next five years, in the next ten years, very clear,” he said. “For me, the e-Tron is not just an electric car, the e-Tron is the next step of a new Audi philosophy — digital, electrified, a user experience in a different way.”
But Audi cannot execute its strategy properly if its top executive is being held indefinitely. Furthermore, if Mr Stadler were charged, it would upend VW’s efforts to show that it reformed its culture and corporate governance.
“There is a vacuum, currently, in the company,” said Erik Bomans, partner at Deminor, a shareholder adviser.
Mr Stadler, who first joined Audi in 1990 and later served as general secretary for Ferdinand Piëch, the former CEO and chairman of VW, has been the CEO of Audi since 2007. He joined VW Group’s board in 2010.
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