Audi CEO arrested

German authorities have arrested Volkswagen's current Audi Chief Executive Rupert Stadler as part of a widened probe into emissions test cheating.

Stadler is the highest-ranking Volkswagen executive still in his job to have been identified as a suspect in the diesel emissions case.

The arrest warrant was made because of a risk that evidence might be suppressed,” Stephan Necknig, a spokesman for the Munich prosecutor’s office, told Reuters Television.

“During a search last week there were signs that the accused may tamper with evidence. To influence other suspects or witnesses, or people who could provide information to the investigating authorities,” Necknig added.

VW and Audi are now holding leadership crisis talks regarding who will be the interim Audi CEO.

According to the news agency, Germany's Sueddeutsche Zeitung newspaper said VW's supervisory board had already picked Schot for the job and only needed the formal approval of Audi's directors. VW denied any such appointment had been made.

The company was found in 2015 to be using software to lower a vehicle’s emissions levels when it was undergoing tests. 

Last week, Volkswagen agreed to pay a fine of 1 billion euros, or NZ$1.6 billion, for failing to properly supervise the staff members who came up with the illegal software.