MUNICH -- Former Audi manager Giovanni Pamio is being released following his arrest earlier this year on suspicion of fraud and false advertising in connection with the carmaker's emissions scandal.
Munich's higher regional court on Friday suspended a U.S. arrest and extradition warrant against Pamio, having already suspended a German arrest warrant a week ago, a court spokesman said. Pamio was released against 80,000 euros ($94,256) in bail.
The U.S. Justice Department had charged Pamio in July with directing employees at the company to design software to cheat U.S. emissions tests in thousands of Audi diesel cars.
Pamio was subsequently arrested by Munich prosecutors and had since remained in custody, pending ongoing German investigations and an extradition request by U.S. authorities.
The engine developer has testified against colleagues and is a key prosecution witness, Sueddeutsche Zeitung reported.
Volkswagen Group's former top engineer, Wolfgang Hatz, remains in custody as prosecutors continue their investigations into the diesel-rigging scandal at VW Group and its Audi division, the paper said.
Hatz, who was arrested in September, worked for Audi and Porsche during his career. He was VW Group's powertrains chief during the time the automaker developed and sold diesel engines manipulated to cheat tests for NOx emissions.
Automotive News Europe contributed to this report