By William Boston 
 

BERLIN--German police arrested a senior Porsche AG executive in the wake of raids this week on the sports-car maker's offices and factories to gather evidence allegedly linking the company to Volkswagen AG's (VOW.XE) emissions-cheating scandal, German prosecutors said Friday.

The massive raid involving 160 police officers and 30 investigators from state's attorneys offices in two German states represents a significant widening of the emissions scandal disclosed in the U.S. nearly three years ago and which has cost Volkswagen more than $25 billion in fines, penalties, compensation for customers and legal fees.

Volkswagen admitted to rigging nearly 11 million diesel-powered cars worldwide to cheat on emissions tests.

As they were sifting through piles of documents, confiscating mobile phones, and copying computer drives and other electronic file sources on Wednesday, prosecutors ordered the arrest of Joerg Kerner, Porsche's head of engine development, considering him a flight risk, according to people familiar with the situation.

Porsche didn't make the executives available for comment.

The Stuttgart investigation on suspicion of fraud targets Mr. Kerner, Michael Steiner--a Porsche board member in charge of research and development--and a lower-level engineer who no longer works at the company, according to people familiar with the situation.

The arrest was first reported by German news weekly Bild am Sonntag.

 

Write to William Boston at william.boston@wsj.com

 

(END) Dow Jones Newswires

April 20, 2018 09:51 ET (13:51 GMT)

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