The 55-year-old German is being held due to the risk that he could prevent evidence from being found, the prosecutor's office has said.
Stadler is the most senior company official to be detained so far since Volkswagen (VW) admitted in September 2015 to using illegal software to rig USA emissions tests on diesel engines.
Prosecutors pushed for Stadler's arrest over fears that he might try to evade justice, dpa reported.
Munich prosecutors had conducted searches at Stadler's private residence as a part of the probe concerning alleged fraud and indirect improprieties with documents. VW's representative went on to mention the presumption of innocence has been applied.
Japan rocked by magnitude 6.1 earthquake, 2 feared dead
Bloomberg reported plants across the area were halted as firms assessed the damage. "The whole world was aggressively shaking". Power has already been restored to the 170,000 households that lost power for a few hours around the Osaka prefecture.
The agency found that Volkswagen had intentionally programmed turbocharged direct injection (TDI) diesel engines to activate their emissions controls only during laboratory emissions testing which caused the vehicles' NOx (Nitrogen Oxides) output to meet U.S. standards during regulatory testing, but emit up to 40 times more NOx in real-world driving.
The auto manufacturer pleaded guilty to criminal charges in the United States and nine managers, including former CEO Martin Winterkorn, were charged. Volkswagen's supervisory board is meeting today, where Stadler's future will be among the topics of discussion.
Just last week, Volkswagen agreed to pay a 1 billion-euro fine imposed by German prosecutors for cheating to get around diesel-emissions regulations.
Most of its problems have been in the United States, where a total of nine people have been charged and two former VW executives have pleaded guilty and been sentenced to prison terms.
Cavaliers will pursue Kawhi Leonard in an attempt to keep LeBron James
The 33-year-old has until June 29 to opt out of the final year of his contract with the Cleveland Cavaliers . Love went from being mainly a spot-up shooter in the 2016-2017 season to being James right-hand man.
"Audi needs a new start", he said.
Volkswagen declined 2.2 percent to 157.88 euros and traded 2 percent lower at 11:50 a.m.in local trading, extending losses this year to 5.2 percent.
Donald Trump, Vladimir Putin exploring 'possible' summit
But President Obama when he didn't go across the red line, what he gave away nobody even knows, he alleged. Because Putin didn't respect President Obama. "One more time, President Obama gave away Crimea".