By Edward Taylor and Jan Schwartz

FRANKFURT (Reuters) - Volkswagen’s (VOWG_p.DE) supervisory boards suspended crisis talks to find a stand-in boss for its Audi brand which were convened after German authorities arrested current Audi Chief Executive Rupert Stadler as part of a probe into emissions test cheating. Stadler’s arrest on Monday threw Volkswagen (VW) into turmoil as it struggles to recover from cheating revelations, which emerged after regulators blew the whistle in September 2015 on the carmaker’s use of illegal software. Stadler, who was accused by Munich prosecutors of collusion, becomes the first person in the VW executive suite to spend time behind bars in connection with the scandal. Spokespeople for Volkswagen and Audi were not immediately available to comment Monday morning. Asked whether U.S. authorities were also seeking to arrest Stadler, a spokesman for the Department of Justice said: “As a general matter, the department will neither confirm nor deny the existence of any ongoing investigation.”

UNDER FIRE

Stadler has been under fire since Audi admitted in November 2015 - two months after parent VW - that it also installed illegal “defeat device” software to cheat U.S. emissions tests. Most of VW's emissions problems have been in the United States, where a total of nine people have been charged and two former VW executives have pleaded guilty and been sentenced to prison terms.
Audi CEO Rupert Stadler is arrested in Ingolstadt, Germany, over "clear signs that there was to be an effort to influence people and other suspects". Stadler is being investigated for suspected fraud and false advertising.