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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.

Robb Report chooses Porsche 911 as its Car of the Year

Robb Report has picked the seventh-generation Porsche 911 Carrera S as its 2013 Car of the Year, saying the two-door captivated its judges with "agility, driving dynamics and balance." The German coupe bested 12 others who were also in the running - the impressive list of nominees included the BMW M5, Audi S8, Ferrari FF, Mercedes-Benz SL63 AMG and the Bugatti Veyron 16.4 Grand Sport Vitesse.
Judging involved more than just throwing darts at pictures on the wall, as the publication enlisted a panel of automotive experts to test drive each vehicle for close evaluation. The panelists included 100 members of the Robb Report Club (comprised of top corporate executives and influential readers), Editor-in-Chief Brett Anderson and automotive consultant Robert Ross. Full results of the competition will be revealed in the luxury magazine's March issue, hitting newsstands in about a week. For more information, visit Robb Report online or check out the full press release from Porsche below.

Porsche close to fix for 911 GT3 engine fires

It looks like 2014 Porsche 911 GT3 drivers might actually get to drive their cars again soon. Reports of fires affecting the track-ready Germans first began about a month ago. Then, a few days later, the automaker confirmed two of the five alleged blazes and said owners shouldn't drive their cars until further notice. Porsche then went so far as to offer to pick up the GT3s and transport them to the nearest dealer until the problem was identified and a fix was found. Finally, there appears to be a repair.
"We know the reason and the problem-solving measures. We're testing them," said Porsche CEO Matthias Müller to Bloomberg. The technical fix will be released to owners shortly.
The recall affects all 785 GT3s that have been sold so far, but there have been no reported injuries caused by the fires. When it first announced the safety campaign, Porsche said: "Internal studies to determine the cause of the engine damage have not been completed yet."