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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.

The Volkswagen Group switches official language to English

The Volkswagen Group can't be fairly thought of as entirely German anymore, so the news that the company is switching its official language to English to help attract managers and executives is a rational, if surprising, decision. While many VW Group companies are still staidly German in character and culture, consider the other companies that it controls: Bentley (British), Bugatti (French), Ducati and Lamborghini (Italian), Skoda (Czech), Scania trucks (Swedish), and SEAT (Spanish). Not to mention the large Volkswagen Group of America operation, which constructs cars in Chattanooga, TN. Volkswagen's explicit motivation is to improve management recruitment – making sure the company isn't losing out on candidates for important positions because they can't speak German – and that's inherently sensible in a globalized economy. Particularly considering, like it or lump it, that English is the lingua franca of said global economy. It also should make it inherently easier to communicate between its world-wide subsidiaries and coordinate operations. It's hard to say for sure if this will have any impact on the consumer, although it's easy to see the benefits if, say, VW Group hires some American product planners or engineers and they push for features and designs that more closely suit American needs. After all, the US is a hugely important market for any manufacturer, and so the switch to English almost certainly has something to do with the outsized influence of the US in the global economy. And there doesn't seem to be a downside from a purely rational perspective, although it could mean that the Group's corporate culture becomes less German. Whether that's a good or a bad thing depends on your perspective. Related Video: Image Credit: Krisztian Bocsi/Bloomberg via Getty Images Plants/Manufacturing Audi Bentley Bugatti Porsche Volkswagen SEAT Skoda

The next-gen Bentley Continental GT takes a page from Porsche

The way things look to be shaping up, changes to the Bentley Continental GT's styling are going to be like changes to the Porsche 911: minor modifications to a firmly established formula. It seems Bentley customers like a certain style, and, as shown by the Bentayga SUV, Bentley is willing to twist that design into any shape. German influence from the parent company has apparently taken hold in Crewe. The new model takes a lot of influence from the EXP10 Speed 6 concept that debuted nearly two years ago. The profile looks the same, but the new car appears more muscular than the current model, with sharp lines that carry from the fender through the doors. All of the requisite curves are present, just tightened up a little. Despite the camouflage, we can tell that the Continental GT will retain its four round lights up front, similar to the EXP10 Speed 6. The LED ring can be seen through the covering on the coupe, while the convertible has even less camo. Out back, little has changed. The oval tail lights still match the exhaust tips, and the coupe's fastback roofline still ends at the rear bumper. The trunk lid now sits flush with the rest of the bodywork, but other than that, there will be no mistaking this for anything other than a Bentley Continental GT. Likewise, changes to the Continental GTC convertible have been minor. We don't yet know when the car will debut or what will rest under the hood, but expect turbocharged eight- and twelve-cylinder power once again. Don't rule out some form of electrification, given the new Bentley shares a platform with the Porsche Panamera 4 E-Hybrid. Related Video: Featured Gallery 2018 Bentley Continental GT and GTC spy shots View 27 Photos Image Credit: CarPix Design/Style Spy Photos Bentley Coupe Luxury Performance