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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.

Porsche would have entered F1 if Audi had blocked its Le Mans program

Go back a few years and you may have heard rumors of Porsche heading into Formula One. That never came to pass - or at least, it hasn't yet - but that doesn't mean that it wasn't close to happening. That's how committed to returning to top-level motorsport competition Porsche has become recently.
Autosport reports that just as Porsche was merging fully into the Volkswagen Group, Zuffenhausen was weighing its options for a factory racing program. Le Mans was its favorite, which makes sense, as it remains far and away the most successful constructor in the history of the famous endurance race. But the strategists at Porsche were worried that its new corporate overlords at Volkswagen wouldn't support two LMP1 programs and would favor Audi, which has positively dominated the modern era of endurance racing, coming second only to Porsche in the number of Le Mans victories it has scored to date.
Porsche's Plan B was reportedly to head into Formula One, although it isn't clear if the German automaker was intent on starting its own team, buying an existing one or merely providing engines to other teams. Porsche fielded its own cars in F1 in the late 1950s and early 60s, and returned as an engine supplier with TAG to power McLaren in the 1980s, powering Niki Lauda and Alain Prost to the World Championship in 1984 and 1985.

Audi starts new e-gas partnership with Global Bioenergies

Audi continues to try to build its green-car cred with one more partnership to produce synthetic fuels made from renewable resources. The German automaker is hooking up with France-based Global Bioenergies to make a synthetic biofuel called e-gasoline. Audi says making this e-gas "does not create competition with food production and farmland," nipping that argument in the bud. Last summer, Audi opened a power-to-gas facility in Werlte, Germany. That factory produces hydrogen and synthetic methane, which are made from renewable energy sources such as water and excess carbon dioxide. The E-gas plant uses electrolysis to split water molecules into oxygen and hydrogen; those elements will later be set aside to power fuel-cell vehicles but in the near term, the plant will make synthetic natural gas. Audi started delivering e-gas in Germany in the fall of 2013 and estimated that it would make enough of the stuff each year to power 1,500 Audi A3 Sportback G-tron vehicles for more than 9,000 miles. Audi also operates a research facility in Hobbs, New Mexico, with renewable fuel company Joule. That plant produces e-ethanol and e-diesel. Check out Audi's press release about its new Global Bioenergies partnership below. Audi launches strategic partnership with Global Bioenergies Premium carmaker and biotechnology company developing the drop-in biofuel Audi e-gasoline Reiner Mangold, Head of Sustainable Product Development: "Another step closer to carbon-neutral mobility with Global Bioenergies" e-gasoline part of the big Audi e-fuels strategy Audi is launching a strategic partnership with Global Bioenergies. The carmaker will work with the French biotechnology company to promote the development of non-fossil fuels. In addition to the Audi e-gas and e-diesel projects, the research into e-gasoline is part of Audi's persistent efforts to find alternative fuels. Reiner Mangold, Head of Sustainable Product Development at AUDI AG: "We're taking another step closer to carbon-neutral mobility with our partners at Global Bioenergies. We are supporting an innovative technology here which can be used to produce renewable fuel. This process does not create competition with food production and farmland." e-gasoline is part of the overall Audi e-fuels strategy. Audi is already operating a research facility for the production of e-ethanol and e-diesel with its partner Joule in Hobbs, New Mexico. The Audi e-gas plant in Werlte began feeding into the grid a few months ago.