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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.

Bentley SUV given green light by VW board

The "will they, won't they" saga over Bentley's SUV plans appears to finally be over. They will. That's according to the German business newspaper Handelsblatt, which is reporting that the controversial SUV will be built after receiving the go-ahead from Volkswagen's board.
Known internally as "Falcon," the still-unnamed Bentley SUV will be based on the EXP 9 Concept that received wildly mixed reviews at its 2012 Geneva Motor Show unveiling. Since the EXP 9's unveiling, there have been a steady stream of leaks and rumors suggesting that the bold-faced vehicle will get a redesign prior to going into production, but it remains unclear how different the final vehicle will look.
According to Automotive News, Bentley is itself stopping short of confirming the green-light report, though it does admit that the SUV's production outlook appears "very positive." Production will likely take place in Slovakia at a plant owned by parent Volkswagen.

Bentley opening new R&D center in Crewe

The world's fastest lorries. That's how Ettore Bugatti referred to cars from Bentley back in the day, employing the British term for trucks, long before the two became sister companies. Those immortal words will come true when Bentley launches its new SUV, which promises not only to be the most luxurious and prestigious but also the first to crack the 200-mile-per-hour mark. But it won't come without its share of investment. Bentley and its parent company Volkswagen will surely have invested untold millions to bring the luxury crossover to market, but the vehicle itself isn't the only major investment the British automaker and its German owners will have made when it does. Bentley is also embarking upon an unprecedented expansion of its headquarters in Crewe. The massive expansion plan, budgeted at over $60 million, will create over 300 new jobs and include the creation of a new research and development center on site. The facility will cover a good half-million square feet and include a design studio, R&D offices and technical workshops that will be home to some 1,300 engineers and will be "the latest step in preparing Bentley's infrastructure to bring the world's first ultra-luxury SUV to roads in 2016." Bentley may undertake some of the SUV's production at home in Crewe, but much of the work is expected to be completed alongside the next Volkswagen Touareg, Audi Q7 and Porsche Cayenne in Slovakia. The expansion plan was announced by Bentley chief Wolfgang Durheimer (also CEO of Bugatti) while George Osborne, Chancellor of the Exchequer (Britain's equivalent to the Secretary of the Treasury or most any other government's Minister of Finance) was visiting Crewe. "Bentley is an iconic British Brand that exports around the world. Their decision to create another 300 jobs in R&D on a new site providing close to 1,000 new jobs is fantastic news for Crewe and for Britain," said Osborne. "The investment will not only create jobs at Bentley, but support many more through suppliers across the UK." MULTI-MILLION POUND SITE EXPANSION BRINGS NEW JOBS TO BENTLEY - GBP40 million planned investment into Bentley headquarters in Crewe - New research and development centre to house 1,300 Bentley engineers - 300 new roles created (Crewe, 4 December 2014) Today, Bentley has announced the latest phase in the biggest site development in the company's history.