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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.

Porsche planning Cayman GT4 racer

To say that Porsche is big in racing is like saying that Warren Buffett dabbles in mergers and acquisitions. But while it fields the 919 Hybrid at Le Mans and in the FIA World Endurance Championship, the bulk of its racing activities are undertaken by private teams that buy customer racecars from the factory. Those in turn are largely based on the 911, but the latest intel from the motor racing world indicates that Zuffenhausen is planning a more accessible customer race car.
The new, more affordable competition car is to be based on the Cayman and built to GT4 specifications, slotting in below the 911-based GT3 Cup, GT3 R and RSR. Autosport reports that Porsche has already developed a prototype and will shortly commence testing. Details are scarce at the moment, but the Cayman GT4 would seem to compete against the likes of the Aston Martin Vantage N24, Nissan 370Z Nismo GT4 and Maserati GranTurismo MC. It will also likely help Porsche foster enthusiasm for a potential road version that's already been spotted undergoing testing. Previous GT4 racing conversions of the Cayman, like the one pictured above, were carried out by third-party racing constructors not recognized by the factory.
Porsche may not be the only one showing interest in the category, however. BMW is said to similarly be considering a GT4-spec version of its M235i Racing model to compete in the same class, taking the place of the defunct M3 GT4 as the Bavarian marque's entry-level customer racing car.

Roger Rodas' widow suing Porsche over Carrera GT crash

Investigations undertaken by local law enforcement may have vindicated Porsche from any wrongdoing in the crash that killed actor Paul Walker and racing driver Roger Rodas last year, but the latter's widow is apparently not convinced. According to emerging reports, Kristine Rodas has filed a lawsuit seeking unspecified damages from Porsche Cars North America.
In her suit filed with the Los Angeles Superior Court, Rodas' attorney Mark Geragos reportedly disputes the findings of the Los Angeles County Sheriff's Department, which asserted that the vehicle was traveling at an unsafe speed of 90 miles per hour on city streets, identifying the speed as the cause of the accident. Instead the lawsuit claims that the vehicle was only going 55 mph and that the cause of the crash was improper equipment - namely a faulty right rear suspension and the lack of a crash cage and proper fuel tank.