Rupert Stadler has been under fire from the media, politicians and VW's powerful trade unions for his handling of the scandal, but he survived a major management reshuffle announced in August thanks to backing from the Piech and Porsche families that control Europe's biggest automaker.
Munich prosecutors said Rupert Stadler was being detained due to fears he might hinder an ongoing investigation into the scandal, plunging Volkswagen (VW) into a leadership crisis.
Volkswagen has filed a legal complaint with a Munich court against the searches carried out by German prosecutors at the law firm it hired to investigate its emissions scandal.
Audi's electric cars push, reported by Reuters earlier this week, is part of a strategic overhaul following the emissions scandal at parent Volkswagen.
Audi will offer on-demand mobility services for premium customers and increase the share of electric vehicles of its overall sales to about a fourth by 2025, the sources said. The Ingolstadt-based brand sold a record 1.8 million cars last year.
The German car giant's Chinese joint venture, FAW-VW, is cancelling staff bonuses and cutting shifts at its plants near Changchun, northeastern China, people with knowledge of the matter said. The bonuses being scrapped typically account for more than half of the assembly-line workers' take-home pay.
Specifically on India, Stadler is reported to have said he expected business to recover eventually, but the process may take longer than earlier anticipated.
Luca De Meo identified the "volatility of exchange rate" in India as a matter of concern for the company but said measures are being initiated to deal with the situation.
The automotive industry faces a tougher year in 2012 than it has done this year, Audi Chief Executive Rupert Stadler told Reuters in an interview for release on Sunday.
German luxury car-maker Audi expects the demand for cars to grow more than three million in India by 2014 as the demand of the growing middle-class for individual mobility continues to increase.
Volkswagen unit Audi is "very pleased" with overall unit sales in January, and may reach sales of 280,000 in China in 2011, Audi Chief Executive Rupert Stadler told German TV.