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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.

Recharge Wrap-up: Jaguar Land Rover talks EVs, Batteries should be modular

A new study out of Germany suggests adopting a modular approach to battery offerings in plug-in hybrid and extended range electric vehicles. Automakers could offer the same car with different battery sizes (and different costs, accordingly) to drivers depending on their driving ranges. This would optimize the total cost of ownership for various drivers better than the current approach. Developing a modular battery design and offering appropriate batteries for different customers "is the key for electric powertrains to meet customer expectations and become cost competitive against conventional technologies," according to the report from the Institute of Vehicle Concepts, German Aerospace Center. Learn more at Green Car Congress. Jaguar and Land Rover are looking to offer more electric driving from their vehicles. Wolfgang Ziebart, head of product development for Jaguar Land Rover, said in an interview that its hybrid system is being tweaked for more electric power and "downsized" combustion. He also said the likely target market for EVs would be second and third vehicles, rather than primary vehicles for urban driving. Within that market, Europeans look for something smaller, while American drivers lean toward larger luxury vehicles for their second car. Ziebart uses the Tesla Model S as an example of American tastes, and compares its size to that of the Jaguar XJ. Read more at Automotive News Europe. Thailand will likely approve a Volkswagen factory as early as next week. A German newspaper suggests that Thailand's Board of Investment is set to greenlight the plant, which is planned for a site near the Port of Bangkok. Thailand is a relatively large and growing auto manufacturing country, which seeks to be a major producer of eco-friendly vehicles. The country's "Eco2" program would provide incentives to Volkswagen if it builds clean cars and meets certain production targets. Read more at Reuters. Formula E has chosen Sky Deutschland for broadcasting rights in the German market. The deal includes television rights, as well as online broadcasting. Sky Deutschland has 3.8 million subscribers in Germany and Austria. Showing the races on Germany's largest pay television provider should help generate interest for the series, particularly the Berlin ePrix - the inaugural season's penultimate race - scheduled for May 30, 2015. Read more at the Formula E website.

VW confirms Golf GTD diesel coming to US for 2016

Part of the Volkswagen Golf recipe that has helped the car sell more than 30 million units in just under 40 years is the number of variants in which the hatchback is offered. Building on that range here in the US, Automotive News is reporting that we will finally be getting the sporty Golf GTD, likely as a 2016 model. It's the GTD, you'll recall, that crosses the performance abilities of the venerable GTI with a powerful and fuel-efficient diesel engine.
After speaking with Andreas Valbuena, Volkswagen product manager for the Golf, AN not only says that the GTD will for sale in the US in a couple years, it also estimates a baseline price of around $27,000, which would place it between the current pricing for the GTI and the Golf R. The GTD is launching in Europe this summer, but we won't be getting the seventh-generation Golf in the US for another year. The news about the performance diesel model isn't entirely unexpected - VW officials have been hinting at it for at least a year now, going so far as to import a sixth-generation model for media test drives on US soil, a task we happily took them up on last year.
The Mk VII GTD uses VW's 2.0-liter TDI engine with output increased to 184 horsepower and 280 pound-feet of torque, allowing the car to sprint to 60 miles per hour in about seven seconds while returning more than 40 mpg in highway driving. We can't wait.