The Munich appeals court has rejected a bid by Rupert Stadler, former CEO of Audi, to regain his freedom, over fears he may collude or otherwise try to obstruct justice.
A statement released by the court, and seen by Reuters, says: "The Chamber emphasises that danger of obstructing justice remains. The release of the accused from custody was therefore rejected."
In an email response to Bloomberg, the court said it's likely Stadler "allowed the engines to be deployed and to be sold despite knowing about the manipulation or deliberately turning a blind eye on the manipulation".
Although Audi emphasises he's innocent until proven guilty, Stadler was relieved of his duties, and replaced on an interim basis by Bram Schot, who was previously the company's sales chief.
Rumours appeared last month linking former BMW purchasing chief Markus Duesmann to the role of permanent CEO. Duesmann is set to join the management board of Volkswagen Group "as soon as he is able to do so".