Volkswagen has recently cut ties with Rupert Stadler, the suspended CEO of Audi, who has been in jail since June due to his involvement in an emissions probe. Stadler has decided to leave the board of management of Volkswagen and resign as the chairman of Audi’s management board. This decision was made by the autos group in light of Stadler’s ongoing pretrial detention, which prevents him from fulfilling his duties on the board and allows him to focus on his defense.
This move comes after Munich prosecutors expressed concerns in June that Stadler, who has been with Volkswagen since 1990, might try to influence witnesses in the ongoing investigation. Stadler’s arrest marks a significant development in the diesel emissions scandal that rocked Volkswagen in 2015. Despite his detention, Volkswagen has maintained that Stadler is innocent until proven guilty. In the meantime, Audi has appointed its top sales executive to lead the company in Stadler’s absence.
The emissions scandal, which involved the manipulation of millions of diesel engines to deceive emissions tests, has had far-reaching consequences for Volkswagen. The company’s stock price plummeted, and trust in diesel technology was severely damaged among consumers and regulators. Volkswagen has already incurred over $30 billion in costs related to recalls, legal fines, and settlements due to the scandal.
In a related move, Volkswagen announced that it would provide incentives to customers in Germany who wished to trade in older diesel cars for more environmentally friendly models. This initiative is part of the company’s efforts to address the fallout from the emissions scandal and rebuild its reputation.
The scandal has also had legal ramifications, with former Volkswagen CEO Martin Winterkorn being indicted by US prosecutors in May on charges of wire fraud, conspiracy, and violations of the Clean Air Act. Winterkorn’s successor, Matthias Mueller, stepped down earlier this year and was replaced by Herbert Diess, a veteran from BMW.
During a press conference in April, Diess acknowledged that Volkswagen had lost a significant amount of trust and that it would take time to regain public confidence in the automaker. The company is now focused on implementing changes to prevent similar issues in the future and restore its standing in the eyes of consumers and regulators.
