Audi's Stadler remains locked up after court rejects appeal

Former Audi CEO Rupert Stadler has been told he will remain in custody after a Munich court rejected his appeal to be released on bail.

Stadler was arrested back in June over allegations that the CEO had tried to tamper with evidence crucial to the Dieselgate emissions cheating scandal that had engulfed both Audi and its parent company Volkswagen Group.

Since his arrest, Stadler has been detained at a prison in the southern German city of Augsburg, where it's now thought he will remain until his trial.

The Audi CEO is facing charges alleging that, while at the helm, he allowed the continued sale of affected diesel models despite having knowledge of emission-software manipulation.

According to prosecutors Stadler, 55, initially was cooperating with investigators but has now ceased to give statements.

Stadler, who had been Audi's CEO since 2007, has been temporarily released from his duties and replaced by Bram Schot as interim CEO.

According to sources, Volkswagen Group will install current BMW purchasing director, Markus Duesmann, as Audi CEO in January 2019.

Stadler remains the highest-ranking Volkswagen Group executive to be arrested since the the company admitted it had rigged 11 million vehicles worldwide to bypass emission tests.

German prosecutors insist that senior Volkswagen and Audi execs were aware that their vehicles were fitted with a 'defeat device'.

Stadler's lawyers have rejected that claim.