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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 gets Q2 and Q4 badges in trademark swap with FCA

Audi has swapped trademarks with Fiat Chrysler Automobiles to snare the rights to the Q2 and Q4 badges for upcoming crossover SUVs. Audi CEO Rupert Stadler confirmed at the Detroit Motor Show that the automaker had finally persuaded FCA to release the two names that would let Audi lock up the Q1 to Q9 badges for its growing SUV family. Audi already plans to drop the Q2 name onto its MQB-based city crossover five-door this year, while the Q4 badge will slot onto the rump of a coupe-like version of the next Q3. It will also reserve the Q1 badge for a 2018 baby crossover, based around the architecture of the next A1 hatch. The A1 will share a lot of its engineering with Volkswagen's Polo-based soft-roader, dubbed T-Cross in concept form. The German company has also pounced on the naming rights for SQ versions of all of its Q-cars, along with F-Tron to cover the day when it pushes hydrogen fuel cell cars into production. Stadler insisted that no money had changed hands in order to pry the two badges off FCA, admitting that they had "each found something we needed." "We promised each other we wouldn't disclose what it cost, but it was not something they were willing to sell," Stadler said. "We tried to get it years ago and they said 'No, never,' but there is never 'never' in business. ... This year I went back to them with a proposal and we talked and there were some negotiations and then we agreed to it." Those negotiations are believed to have centered on a trademark swap with a Volkswagen Group name that FCA desperately (evidently) wants to use on a Fiat, Alfa Romeo, Chrysler, Dodge or Maserati. Asked if Audi had given FCA a trademark in return for Q2 and Q4, Stadler replied, "Something very much like that, yes." Audi has used Italian names on past concept cars that FCA could be interested in, such as the 2001 Avantissimo concept and the 2003 Nuvolari coupe. The latter was named after legendary pre-war racer Tazio, who won grands prix for both Alfa Romeo and Audi's forerunner, Auto Union. Both are unlikely trade chips, with laws in Europe preventing the trademarking of the names of actual people. There is always "quattro" (Italian for "four"), but after investing nearly four decades locking it in as an Audi all-wheel-drive name, it's just not anything like trade bait.

Refreshed 2016 Audi Q3 starts at $34,625

The Audi Q3 only arrived in the US for the 2015 model year, and for 2016 the compact luxury crossover is already getting a new front end, plus a bump in price to go with the facelift. The cost for the base Premium Plus trim with front-wheel drive is now $34,625, which includes the $925-destination charge on all models. That's $1,200 more than last year. For the extra money, customers get a resculpted front end that features harder angles in the chrome shield that outlines the grille. The piece now extends to connect to the reshaped headlights, and the air intakes in the bumper get a larger, more aggressive look. At the rear, the taillights also have a tweaked design. Buyers get to choose from new exterior colors, as well, including Hainan Blue, Utopia Blue, Misano Red, and Cuvee Silver. In addition to the revised styling, fore and aft parking sensors and a rearview camera are now among the standard features. The higher-spec Prestige trim now rings up for $39,525 in front-wheel drive form. It adds features like a standard 7-inch MMI navigation system, power tailgate, blind-spot monitoring, a 14-speaker Bose stereo, and full LED headlights. New powertrains are not among the list of changes for the Q3. All models still come with a 200-horsepower, 2.0-liter turbocharged four-cylinder that's hooked up to a six-speed automatic. Front- wheel drive is standard, but Quattro all-wheel drive is a $2,100-option on both trims. Audi announces pricing for the updated 2016 Q3 crossover June 03, 2015 | HERNDON, Virginia Compact crossover receives redesign of front lights, grille, and exterior fascia along with Alu-optic interior MMI controls and interior upgrades Front and rear parking sensors with rearview camera join wide array of standard equipment Full LED headlights and dynamic rear turn signals on Prestige trim Audi today announced pricing for the 2016 Q3. The redesigned compact crossover now boasts a wider array of standard features, including front and rear parking sensors with a rearview camera, as well as an updated dynamic exterior styling for a balance of luxury and functionality. 2016 Audi Q3 The 2016 Q3 boasts a refreshed exterior aesthetic, with redesigned front lights, grille, bumper, side sills and rear lights. The crossover is now offered with standard 18'' 5-arm turbine design wheels. Also available are 19" 5-double-spoke Offroad design wheels.