Stadler was arrested in June over his role in "Dieselgate," a scandal that came to light in 2015 over the emissions readings of diesel vehicles. Volkswagen, the parent company of Audi, admitted to installing software that cheated emissions tests. The software was installed on over 11 million diesel vehicles. Volkswagen's former CEO, Martin Winterkorn, has already been charged with wire fraud and conspiracy, and other executives have been indicted as well.

The Audi CEO has maintained he had no knowledge of Dieselgate, and prior to his arrest, his contract with Volkswagen had been extended. Now, the two are parting ways. The company still is struggling to emerge from the scandal's repercussions, so starting fresh may be a good move.