Suspended Audi CEO and board chairman Rupert Stadler has lost an appeal to be released from jail amid continuing ‘dieselgate’ investigations.

Stadler was detained by the German authorities in June amid suggestions that he was seeking to influence witnesses as investigations continue into Audi executives’ role or knowledge in the ‘dieselgate’ emissions cheat scandal. Stadler was arrested after his phone was tapped by the police, creating concerns that he was trying to influence witnesses.

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A statement from the German authorities suggests that the risk of Stadler obstructing justice remains.

“The Chamber emphasises that danger of obstructing justice remains. The release of the accused from custody was therefore rejected,” the Munich court said in a statement, according to Reuters.

Stadler had asked to be released from custody and appealed against his arrest.

Media reports in Germany suggest that ex-BMW executive Markus Duesmann has been lined up to take over as permanent Audi CEO from January 2019. The precise timing of Duesmann being appointed as CEO is complicated by his existing contract at BMW where he is responsible for purchasing.

At a meeting last month, the Supervisory Board of Volkswagen decided to offer Markus Duesmann a position on the Group Board of Management. Mr Duesmann, currently Board of Management member for Purchasing and Supplier Network at BMW AG, will take up his new position as ‘soon as he is able to do so’, VW said. An agreement to this effect has already been signed.

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