Rupert Stadler, the CEO of Audi has been arrested as part of the investigations into the Volkswagen diesel scandal.

Mr Sadler is the most senior Volkswagen official to be taken into custody in Munich and is being detained amid fears he might hinder its investigation into the scandal, plunging Volkswagen, which owns Audi, into a leadership crisis.

News of the arrest comes as the VW group tries to introduce a new leadership structure, which includes Stadler, and accelerate the group’s shift towards electric vehicles. An interim CEO will be appointed immediately to take over the position of Mr. Stadler.

A judge in Munich ordered that Mr. Stadler be remanded in custody to prevent him from obstructing or hindering the diesel investigation.

"As part of an investigation into diesel affairs and Audi engines, the Munich prosecutor's office executed an arrest warrant against Professor Rupert Stadler on June 18, 2018," the prosecutor's office said in a statement. A judge in Germany has ordered that Stadler be remanded in custody, it said, to prevent him from obstructing or hindering the diesel investigation.

Audi and VW confirmed the arrest and reiterated Rupert Stadler was presumed innocent.