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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.

2015 Audi A3 Cabriolet

When my 758-mile journey on the A3 TDI Challenge came to an end in Boulevard, CA, Audi had a very nice consolation prize waiting for me: the 2015 A3 Cabriolet you see here. And with miles left to drive before reaching my hotel in Coronado (just outside of San Diego), what better way to celebrate my personal victory of achieving nearly 60 miles per gallon in the TDI than to run the rest of the route in couple of turbocharged A3 droptops? After all, the efficiency part of my drive was done, so it was time to have some fun. The A3 Cabriolet comes to market just as the sun sets on another four-seat convertible from the Volkswagen Group stable: the Eos. That car, often criticized as being too expensive, is technically replaced by the Beetle Convertible as far as VW-badged products go. But for those who still prefer something a bit more upmarket, the A3 Cabriolet will fill the void nicely, and with more style and grace than the Eos ever had. Driving Notes The A3 Cabriolet arrives with a choice of engines. On the base end lives a 1.8-liter turbo-four with 170 horsepower, 200 pound-feet of torque and front-wheel drive, or you can pony up for the 2.0T with 220 hp, 258 lb-ft and standard Quattro all-wheel drive. Regardless of engine, the only transmission available in the A3 Cab is Audi's six-speed S-tronic dual-clutch unit. This is a fine cog-swapper, with quick shifts regardless of chosen powertrain, and steering wheel-mounted paddles that offer plenty of fun from behind the wheel. That said, I found it best to just leave the transmission alone, no matter the engine. The paddles are entertaining, sure, but slick the gear selector into Sport and the A3 will instinctively hold gears through turns and always have you right in the heart of the powerband. The 1.8T's 170 hp and 200 lb-ft are more than adequate for duty in the 3,373-pound A3 Cabriolet. I was never bothered by a lack of power, especially with the engine on boil with the transmission in its sport setting. Hitting 60 miles per hour takes 7.4 seconds, en route to an electronically limited top end of 130 miles per hour. If speed is your thing, though, the 2.0T certainly delivers quite a punch. That same 0-60 sprint takes just 5.9 seconds with the more potent powerplant, and you can really feel the stronger rush of power right off the line, even with the quicker A3's 210-pound weight penalty.

2014 Audi A3 Cabriolet cleans up the Messe [w/video]

If we're being honest, the outgoing Audi A3 Cabriolet never really flicked our Bic. That was just fine, of course, because Audi never brought it to North America. This new model, however, might have a different future.
And while Audi has yet to officially decide on this car's North American future, this Frankfurt Motor Show debut clearly has a better sense of proportion and aggression to it, and we're excited about its powertrain solutions, too. For the European market, Audi is promising TFSI gasoline engines in either 1.4- or 1.8-liters, along with a 2.0-liter TDI diesel, all being available in front- and all-wheel drive. Audi has also confirmed its first-ever S3 Quattro Cabriolet, which figures to combine a quick 18-second top drop and its hard-hatted sibling's even quicker 296-hp 2.0-liter turbo.
Even though Audi has been better about bringing its high-performance models to North America and has a new emphasis on growing its A3 business in our territories (including a US-minded sedan bodystyle), we would still be a bit surprised to see an S3 Cabriolet popping its entry-level top in dealers in a couple years' time. Having said that, we do think this A3 Cabriolet is almost a lock. Be sure to take a good, long look at our gallery, video and the official press release below.