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German prosecutors have recorded calls between VW bigwigs talking dieselgate

It's barely possible to believe how poorly Volkswagen continues to handle dieselgate. Depending on which day you catch the news, the German carmaker embodies the corporate venality of "Michael Clayton," the comic blundering of the Coen Brothers' "Burn After Reading," and the every-man-for-himself vengeance of "Reservoir Dogs." Today is Tarantino day, with news that German prosecutors have recordings of phone calls between former Audi and Porsche development boss Wolfgang Hatz, ex-Volkswagen Group executive Matthias Muller, and current Porsche executives Oliver Blume and Michael Steiner. Hatz made the calls to the trio in November 2015, two months after Volkswagen admitted its diesel-particulate sins to the U.S. Environmental Protection Agency. Hatz was still employed at the time, and in his company car. Who recorded the calls? His wife. Hatz and his missus apparently saw the storm coming and started stacking defenses early. Hatz's wife, who can be heard encouraging Hatz during at least one call, sent the recordings to Hatz's attorney from her mobile phone. According to a Google translation of the German newspaper Handelsblatt's report, she included the note, "Here is a very long, but quite informative conversation on the current situation with useful formulations." The report in Handelsblatt said that in Germany it is generally "not allowed" to record a conversation and pass it on to a third party. We don't know how the authorities will handle this matter, since prosecutors found the recordings in e-mail attachments on Mrs. Hatz's mobile phone. Remember, when the diesel scandal broke, VW spent months saying that only a small number of low-level personnel were behind it, and all of the higher-ups had been blindsided. Ex-CEO Martin Winterkorn claimed to be "stunned that misconduct on such a scale was possible in the Volkswagen Group." Winterkorn successor Matthias Muller said, "according to current information, a few developers interfered in the engine management." Former VW USA honcho Michael Horn told a congressional committee that "a couple of software engineers" programmed the software for reasons no one could understand. In the recorded conversations, Hatz apparently called Muller to find out how VW planned to treat him.

Audi tops BMW and Mercedes in luxury sales

April was a good month for Audi, as the four-ring automaker beat out both Mercedes-Benz and BMW in sales. Bloomberg reports that it was America's appetite for CUVs like the Q5 and ancient Q7 that helped Audi move nearly 153,000 units around the globe. It's not all good news, though. Audi's worldwide sales only jumped by 2.5 percent, compared to BMW and Mercedes, whose sales increased 5.6 and 11 percent, respectively. On top of that, BMW is still the best-selling brand (of the three, anyway) so far in 2015, outselling Audi by roughly 9,000 units and Mercedes by about 23,000 vehicles. Considering the faster growth of its rivals, it's unclear if Audi will be able to hang onto the monthly sales crown beyond April, or if BMW will continue its reign as the world's biggest luxury automaker.

Audi SQ7 spied for the first time

Audi isn't really hiding that its engineers are hard at work on a high-performance version of the latest Q7. However, we haven't seen any of the fruits of this labor, until we got these fresh spy shots of the SQ7. With seemingly no camouflage on the car, these photos might give a very good idea of what to expect from Audi's speedy SUV. One big tip-off of the model's performance aspirations is the redesign of the front end's lower portion. New ducts beside the foglights send cool air to what appear to be intercoolers. This test model rides on a very cool-looking set of basket-weave style wheels, and the big, cross-drilled brakes are easy to spot behind them. At the rear, the quad exhaust tips also signal something special. Our spies also snapped some shots of the interior. If there is any question about whether this is the SQ7, these photos certainly assuage it. The badging is plain as day on the gauges, but at this point the changes appear to be fairly minimal beyond that. We know the SQ7 is going to get more power, but the method isn't officially confirmed yet. Although, Audi technical boss Dr. Ulrich Hackenberg said bluntly last year that it would use an electrically turbocharged engine, possibly an evolution of the V6 diesel in the RS5 TDI Concept. Hackenberg also suggested that the SQ7 would go on sale in 2016. Though, the actual debut might come earlier. Regardless, the tweaks should make the SUV quite a performer. Even on the standard version, it weighs 700 pounds less than the previous generation, while remaining about the same size.