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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.

Audi bringing all-electric CUV to Frankfurt

Audi will introduce a new, all-electric, MLB-based concept this September at the 2015 Frankfurt Motor Show. According to CEO Rupert Stadler, production of the vehicle this concept foreshadows will eventually hit 10,000 units. Stadler isn't the only Audi exec dropping details on the company's high-riding EV. Research and development boss Ulrich Hackenberg let slip that the all-electric "sports activity vehicle," might be followed by both a gas-powered plug-in variant and hydrogen-fuel-cell model. According to Hackenberg, the production model will arrive in early 2018, cover about 310 miles per charge, and target the upcoming Tesla Model X. Look for more on this new model and the concept that will precede it as the Frankfurt Motor Show approaches. Related Video:

Next Audi A8 to drive itself up to 37 mph

Audi has been publicly, loudly, working the autonomous angle for years - it was working on Shelley, the autonomous TTS that would climb Pikes Peak in 27 minutes, way back in in 2009. Parent company Volkswagen had been working with Stanford University on autonomous vehicles for five years before that, and the same program collaboration would take the lead in Audi's efforts here. Where are we now? Well, a convoy of Audi A7s just drove journalists from San Francisco to the Consumer Electronics Show in Las Vegas, with "piloted driving in 100 mile stints." On the highway, the "piloted driving" A7 works up to 70 miles per hour and can change lanes, pass other cars, accelerate and brake on its own. A report in Autoweek says public adoption of the technology will continue with the next-generation A8, which will be able to navigate on its own up to 37 mph, make its way through traffic, find a parking spot and park itself. Over time, capabilities will be added - like a higher mph limit - as the technology and the legal issues are fine tuned. The A7 that just did the SF-to-LV run doesn't work in cities, only on highways, so it appears Audi is kicking this off with the abilities demonstrated in an A6 Avant last year at CES. That car had a Traffic Jam mode that only worked in dense traffic and up to 40 mph, but when in operation, it allowed the driver to watch a movie or conduct a videoconference. We have a feeling those two bits of icing won't be included in the fourth-generation A8, though. We'll be late to the party when the big sedan comes; Audi says it will go on sale by the end of 2016, but the US isn't expected to get it until 2017 as a 2018 model. Featured Gallery Audi A8 Spy Shots News Source: AutoweekImage Credit: CarPix Audi Technology Autonomous Vehicles Luxury Sedan