By William Boston 

BERLIN -- The chief executive of Volkswagen AG's luxury brand Audi was arrested Monday in connection with an investigation of his role in the German car maker's diesel emissions-cheating scandal.

The arrest, the first of a Volkswagen executive board member in connection with the dieselgate scandal, comes a week after Munich prosecutors added Rupert Stadler to a list of suspects in a fraud investigation that is targeting around 20 people.

A Volkswagen spokesman confirmed that Mr. Stadler had been arrested, but declined to comment further, citing the ongoing investigation, apart from to say the executive still enjoyed the presumption of innocence. Audi wasn't immediately available for comment.

Munich prosecutors arrested Mr. Stadler just hours before Volkswagen's supervisory board was due to meet and hear a presentation from its lawyers about the investigation into Audi executives and employees, according to people familiar with the matter. The board is dominated by core shareholders -- the heirs of Beetle inventor Ferdinand Porsche and the state of Lower Saxony -- and the IG Metall trade union, which holds half of the twenty seats.

In a statement Monday, prosecutors said Mr. Stadler had been arrested because of the danger that he could suppress evidence needed in the investigation. A judge in Munich is due later Monday to determine whether Mr. Stadler would be remanded to prison pending trial.

Last week, the Munich prosecutor's office said that Mr. Stadler and another unnamed Audi executive were suspected of committing fraud and falsifying documents in connection with selling diesel vehicles with manipulated emissions software in European markets.

Mr. Stadler's attorney wasn't immediately available for comment.

Volkswagen admitted in 2015 to rigging nearly 11 million diesel-powered vehicles to cheat on emissions tests, including models made by Audi. In 2016, Audi was part of a broader settlement reached between Volkswagen and the U.S. government. Volkswagen pleaded guilty to defrauding the U.S. government and has incurred around $25 billion in penalties, fines, and compensation for customers.

Mr. Stadler has close ties to the Porsche family, who hold a majority of Volkswagen's voting stock. He has come under pressure to step down from investors and analysts who say that he hasn't been aggressive enough in resolving Audi's involvement in the scandal.

The manipulation of diesel engines affected 2-liter engines that were made by Volkswagen and used in some Audi vehicles, such as some compact A3 models. Larger 3-liter diesel engines built by Audi and used in sport-utility vehicles produced by Audi, VW and Volkswagen's sports-car brand Porsche were also manipulated.

Write to William Boston at william.boston@wsj.com

(END) Dow Jones Newswires

June 18, 2018 06:22 ET (10:22 GMT)