Jochen Sengpiehl, Volkswagen's China chief marketing officer and head of product strategy, has been deported back to Germany after being detained in China for around 10 days.
It has been reported that Sengpiehl tested positive for drugs after returning from a vacation.
Volkswagen is currently conducting an internal review regarding this incident.
The German Federal Foreign Office has confirmed that its embassy in Beijing provided consular assistance and maintained regular contact with Sengpiehl, his family, and local authorities.
This incident comes at a challenging time for Volkswagen, as it faces declining demand for its core passenger car brand and increased competition in the Chinese market.
In the third quarter, Volkswagen's deliveries in China, the world's largest car market, dropped by 15%, with a total of 711,500 vehicles.