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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.

2016 Audi S6 and S7 First Drive

Audi paired the S6 and S7 for the purposes of this test in Southern California, but these are rather disparate cars. A three-box sedan, even a sporty one like this S6, is for a specific kind of customer. A sleek, four-door hatchback like the S7, on the other hand, is for a different kind of person. These two people might not be as different as Dr. Jekyll and Mr. Hyde, but at the very least the S7 is the S6's lothario neighbor – the one who's always got a glass of scotch in one hand and a chambermaid in the other. A day spent in the canyons around Los Angeles proves there's a big difference between these cars. First, though, let's discuss their similarities. The S6 and the S7 get the same design overhaul we detailed in our piece on the 2016 Audi A6, namely the edge work done on the grille, bumpers, headlights, and taillights. Additionally, they get Audi's new MMI system – the brand's next step in infotainment. A day spent in the canyons proves there's a big difference between these cars. Changes exclusive to these S models include flat-bottomed steering wheels with model badges at the base of the center spoke, and aluminum-finish shift paddles. The pedals and footrest get the aluminum look as well. There's also a new shift lever, and a revised design for the Quattro badge. New seat and surface treatments join the options list, such as Beaufort Walnut inlays and Valcona leather seats in Cedar Brown. The S7 has a new Arras Red interior option as part of its design selection palette, but the striking addition there is the carbon fiber inlay it comes with, which is interwoven with a red thread. You lean in really, really close and see that scarlet yarn, and the cockpit immediately feels more special. It's the kind of beautiful subtlety you expect from Audi, and the result is a scrumptious cabin. The twin-turbo, 4.0-liter V8 gets 30 more horses, topping out at 450 horsepower. Torque remains the same at 406-pound-feet, but fuel economy increases ever so slightly to 18 miles per gallon in the city, 27 mpg highway, and 21 mpg combined. The S6 makes a meal of curves, but it does give away a hint of the effort. It seems that a fair number of buyers wanted S vehicles without the whole suite of go-fast bits; they liked having the "S" on their chests, they didn't need all of the superpowers. Thus, Audi took the Quattro sport differential and dynamic steering off the standard menu, and bundled it with the sport exhaust to create the now-optional Sport Package.

More details on next Audi A4 mooted, including PHEV

With just under two more years until the next-gen Audi A4 hits the streets, it's not surprising that details are starting to leak out. The Brits from Autocar are reporting some information on the 2015 A4, although it isn't clear where any of it came from.
The most substantial news might be in regards to the plug-in hybrid version of the car. We've known for a couple years now that an A4 PHEV was being planned, but the report indicates that a trio of plug-in configurations are being planned, equipped with a 2.0-liter gas engine, a 2.0-liter diesel engine or a 3.0-liter supercharged V6. All engines will be paired with an eight-speed automatic transmission, and the A4 plug-in is said to have an all-electric range of up to 31 miles.
In terms of styling, the next A4 shouldn't stray too far away from Audi's current design language, but it will introduce a new version of the automaker's signature grille. Despite being about the same size as the existing A4, the fifth-generation model will drop some pounds thanks to various weight-saving techniques with the most obvious being aluminum body panels. Based on this info, we should see the A4 sedan and wagon in April 2015, an Allroad later in the year and a redesigned A5 lineup hitting the scene in 2016.