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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.

VW says it has sold over 100,000 TDI diesels in America this year

Volkswagen Group of America has lit oil-burning fireworks to celebrate the sales of more than 100,000 TDI Clean Diesel vehicles in the US between its VW and Audi brands this year. According to VW, that means it is responsible for more than 75 percent of diesel-engined cars and SUVs sold here - perhaps not surprising when the two brands offer a total of 12 diesel models.
What might be surprising is that the number of diesels isn't far off the estimated sales of 90,000 battery electric vehicles and PHEVs, with 15,000 of those accounted for by the Tesla Model S, another 12,000 or so being the Toyota Prius PHEV.
VW's keen to play up the ease of making diesel part of your life, stressing that it doesn't need any change to the refueling infrastructure and that "this is a technology delivering real answers to society's concerns about fuel consumption and greenhouse gas emissions without compromises."

Refreshed 2015 Audi A8 starts at $77,400*

Audi definitely made the US wait for the refreshed 2015 A8 and S8. The updated models were first unveiled last summer, but it has taken until June for the revised flagship sedan to reach dealers here.
The refreshed A8 line doesn't come cheap, though. Prices are up $2,000 or more over the 2014 model year. The basic 3.0T model goes for $77,400 or $81,400 for the long wheelbase version. The long wheelbase TDI is $85,100. The standard 4.0T model asks $86,400 or $90,400 for the longer one. An S8 sets back buyers $114,900, and the full bore A8L W12 is $137,900. All of these prices exclude destination (which was $895 last year and now stands at $925, according to Audi representative Mark Dahncke).
To make the wait worth it, Audi is packing the sedan with new technology and given it the slightest restyle. All models of the luxurious vehicle now come standard with full LED headlights. The 2015 model also benefits from electromechanical steering, available variable ratio steering and active lane assist. The night vision system is also updated to detect animals and alert the driver. Mechanically, there are some tiny tweaks as well. The 4.0T V8 is boosted to 435 horsepower, compared to 420 hp previously, and the 6.3-liter W12 now has cylinder deactivation.