BUSINESS

Audi supervisory board suspends CEO, installs interim chief Schot

June 19, 2018
File photo shows Bram Schot, board member of German car maker Audi AG, at the company's annual press conference in Ingolstadt, southern Germany. — AFP
File photo shows Bram Schot, board member of German car maker Audi AG, at the company's annual press conference in Ingolstadt, southern Germany. — AFP

MUNICH — The supervisory board of Audi has suspended Chief Executive Rupert Stadler and appointed Dutchman Bram Schot as an interim replacement, a source familiar with the matter said on Tuesday. Audi was not immediately available for comment.

The decision comes as Volkswagen bosses were locked in a second day of hastily convened meetings to address a leadership crisis sparked by the arrest of the head of the carmaker's Audi brand, sources familiar with the matter said.

Germany's largest carmaker is scrambling to determine how to manage its most profitable brand after German authorities detained Stadler as part of their investigation into the group's emissions test cheating scandal.

Schot joined the Volkswagen group in 2011 after having worked as president and CEO of Mercedes-Benz Italia. He has been Audi board member for sales and marketing since last September.

The arrest of the 55-year-old Stadler on Monday threw VW back into turmoil, as it raised fresh questions about whether the company had done enough to reform itself almost three years after it admitted to rigging US emissions tests on diesel engines.

Stadler has been under fire from the media, politicians and VW's powerful trade unions for his handling of the emissions scandal, but he survived a major management reshuffle announced in August thanks to backing from the Piech and Porsche families that control VW.

Last week, Munich prosecutors said they were investigating Stadler, the head of VW's most profitable business, for suspected fraud and false advertising and for his alleged role in helping to bring cars equipped with illegal software on to the European market.

They said the decision to arrest him at his home in Ingolstadt in the early hours of Monday was made because they saw a risk that he could try to suppress evidence. He remains remanded in custody but has not been charged with a crime.

Stadler is the most senior executive yet to be detained in the dieselgate crisis, which started when the Volkswagen group admitted in 2015 to installing so-called "defeat devices" in some 11 million diesels worldwide that made them seem less polluting in lab tests than they actually were on the road.

The affected vehicles involved VW's own-brand cars, but also those made by Audi, Porsche, Skoda and Seat. Audi is under particular suspicion that its engineers helped create the software used in the scam.

Around noon local time, the VW group supervisory board was due to be informed about the proposed changes at the top of Audi in a telephone conference, two sources said.

VW shares extended Monday's decline, trading 2.1 percent lower at 150.9 euros by 1040 GMT. — Reuters


June 19, 2018
71 views
HIGHLIGHTS
BUSINESS
day ago

MECOTEC forays into Saudi Arabia bringing cryo technology catering to diversifying health and lifestyle trends

BUSINESS
day ago

Driving innovation and sustainability: An interview with Mohammed Salem AL Ojaimi, Chairman of AL Ojaimi Industrial Group

BUSINESS
day ago

AL Ojaimi Industrial Group announces launch of new REPL factory in Riyadh