The Luxury Auto Market is Shaken by the Arrest of Audi’s CEO in Germany
It’s not easy to reach the top and remain there. Some people are willing to make every sacrifice just to keep their position and this could bring them in unwanted situations. Recently, we have received an example that confirms this rule. The luxury auto market has been hit by one of the biggest scandals we’ve heard in many years.
Rupert Stadler, the CEO from Audi has been arrested in Munich, Germany, as part of an investigation connected with costly diesel emissions. The prosecutors who are leading the investigation declared that Stadler has been detained because of suspicions connected with evidence tampering.
Who is Rupert Stadler?
The suspect who is now 55 years old, has been working for Audi’s parent company, Volkswagen, since 1990 and has become the highest-ranking executive to be arrested after being involved in a scandal about diesel emissions.
Stadler became a part of Volkswagen’s management board in 2010 and the scandal burst in 2015. His company refused to make official statements upon his arrest and mentioned that the supervisory board will discuss this matter and decide how to act further in this situation. Of course, the principle of the presumption of innocence applies in Stadler’s case also, but this doesn’t mean that the unfortunate event won’t have any repercussions.
What will follow?
The CEO’s arrest comes right after Germany’s 1 billion EURO ($1.2 billion) imposed penalty on Volkswagen for having interfered with diesel engines emissions. In order to make emissions seem less toxic then they are, they put a special software on both Audi and Volkswagen cars. Thus, their vehicles passed the clean air tests, but failed to keep the customers’ trust when the whole scandal was out.
Because of Stadler’s arrest, Volkswagen shares dropped by 2.6% only in Frankfurt. This will cause them a lot of money, although they already lost $30 billion worthing recalls, legal penalties and settlements.
As our second lead editor, Anna C. Mackinno provides guidance on the stories Great Lakes Ledger reporters cover. She has been instrumental in making sure the content on the site is clear and accurate for our readers. If you see a particularly clever title, you can likely thank Anna. Anna received a BA and and MA from Fordham University.