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Audi CEO's Dieselgate arrest threatens fragile truce among VW stakeholders

FRANKFURT — The arrest and detention of Audi's chief executive forces Volkswagen Group's competing stakeholders to renegotiate the delicate balance of power that has helped keep Audi CEO Rupert Stadler in office. Volkswagen's directors are discussing how to run Audi, its most profitable division, following the arrest of the brand's long-time boss on Monday as part of Germany's investigations into the carmaker's emissions cheating scandal. The supervisory board of Audi, meanwhile, has suspended Stadler and appointed Dutchman Bram Schot as an interim replacement, a source familiar with the matter said on Tuesday. Schot joined the Volkswagen Group in 2011 after having worked as president and CEO of Mercedes-Benz Italia. He has been Audi's board member for sales and marketing since last September. The discussions risk reigniting tensions among VW's controlling Piech and Porsche families, its powerful labor representatives and its home region of Lower Saxony. VW has insisted the development of illegal software, also known as "defeat devices," installed in millions of cars was the work of low-level employees, and that no management board members were involved. U.S. prosecutors have challenged this by indicting VW's former chief executive Martin Winterkorn. Stadler's arrest raises further questions. Audi and VW said on Monday that Stadler was presumed innocent unless proved otherwise. Munich prosecutors detained Stadler to prevent him from obstructing a probe into Audi's emissions cheating, they said on Monday. Stadler is being investigated for suspected fraud and false advertising. Here are the main factors deciding the fate of Audi. Background: Audi's role in Dieselgate Volkswagen Group was plunged into crisis in 2015 after U.S. regulators found Europe's biggest carmaker had equipped cars with software to cheat emissions tests on diesel engines. The technique of using software to detect a pollution test procedure, and to increase the effectiveness of emissions filters to mask pollution levels only during tests, was first developed at Audi. "In designing the defeat device, VW engineers borrowed the original concept of the dual-mode, emissions cycle-beating software from Audi," VW said in its plea agreement with U.S. authorities in January 2017, in which the company agreed to pay a $4.3 billion fine to reach a settlement with U.S. regulators.

Delphi plans automated-driving journey across the United States

Delphi is attempting to become the first company to pilot an automated car across the United States. The global automotive supplier will start a cross-country journey from a location near the Golden Gate Bridge in San Francisco starting on Sunday, March 22, and cover approximately 3,500 miles on a trip to New York, where it will arrive sometime during the New York Auto Show. Along the way, Delphi engineers will gather data on how the car, an Audi SQ5, performs in a variety of road and weather conditions that the company says could only be tested in a real-world environment. "Delphi had great success testing its car in California and on the streets of Las Vegas," said Jeff Owens, the company's chief technology officer. "Now it's time to put our vehicle to the ultimate test by broadening the range of driving conditions." A formal announcement is expected tomorrow during the SXSW festival in Austin, TX. The company recently demonstrated many of its advanced-safety and automated driving technologies during CES, driving in Las Vegas. The cross-country trip will include tests on its radar, vision and advanced-drive assistance systems, certain vehicle-to-vehicle and vehicle-to-infrastructure communications, and intelligent software, which includes automated highway pilot with lane-change technology, automated urban pilot and automated parking functions. Though a driver will be behind the wheel throughout the journey, Delphi says its active safety technologies can make complex decisions, like stopping and proceeding at four-way stops, timing highway merges and calculating safe maneuvers around bicyclists. While California has certain motor-vehicle laws that help regulate autonomous vehicles, it was unclear whether Delphi needs special arrangements or permission from other states to conduct automated-vehicle testing elsewhere – or if those concerns might be negated by an active driver. Earlier this year, Audi turned heads at CES by driving an A7 from San Francisco to Las Vegas in a similar display of automated-driving technology. Related video: Image Credit: Delphi CES Audi Technology Emerging Technologies Autonomous Vehicles

These are the top luxury cars bought by people entering the segment for the first time

Let's say you just got a big promotion at work or the kids are moving out of the house, and you finally have some extra money. You decide to blow it all at once and treat yourself by upgrading your ride. Naturally, you look to a luxury automaker. What do you choose?
Models like the Audi A3 and Mercedes-Benz CLA-Class may be tailor-made to introduce buyers to the premium segment, but a new study finds that they don't garner the highest rates of non-luxury customer conquests. It turns out that a Volvo leads among folks moving up to a premium brand, and it isn't even one that's made anymore, at that.
A recent study by Polk and IHS Automotive looked at what models had the highest rates of buyers upgrading from a non-luxury segment. The information comes from its new vehicle registration data through April 2014. All ten top models boasted conquest rates of over 50 percent, but the Volvo C70 led the field with 68.01 percent of its customers coming from non-premium brands.