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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 sets diesel records on road and track

Ever the proponent of diesel propulsion, Audi has claimed two very different kinds of records in Europe with its finest oil-burners. The more exciting of the two was achieved recently at the Sachsenring, where the Audi RS5 TDI Competition Concept posted the fastest diesel-powered lap time ever recorded on the track. As you may recall, Audi revealed the RS5 TDI Concept last year, swapping the gasoline-burning 4.2-liter V8 in the production RS5 coupe for a 3.0-liter V6 diesel with two turbochargers and an electric supercharger. The result was 385 horsepower and 553 pound-feet of torque, but Audi's been working on the prototype over the course of the past year. In the new Competition version, output is up to 435 hp and 590 lb-ft, and despite the inherently heavier diesel engine, it actually weighs 531 pounds less than the production model. That helped the RS5 TDI Competition lap the circuit in 1:35.35, besting the previous diesel lap record by 1.87 seconds, and adding to the Hockenheim record it took previously. Around the same time, another team set out from Maastricht in the Netherlands in an Audi A6 TDI Ultra and drove it for 28 hours straight, hitting 14 countries and logging 1,158.9 miles on a single tank of diesel. The achievement, certified by Guinness World Records, was completed in a showroom-stock vehicle, with automotive journalist Andrew Frankel and racing driver Rebecca Jackson splitting driving duties. They achieved an average of 75.9 miles per gallon – much better than the advertised rating of 67 mpg – as they cruised through from Holland to Hungary, passing along the way through Belgium, Luxembourg, France, Switzerland, Lichtenstein, Austria, Germany, Italy, Slovenia, Croatia, Bosnia, and Serbia. Record: Audi RS 5 TDI competition concept drives to record time on the Sachsenring track - Audi sets new lap record for cars with diesel engines - Superior technology platform with 435 hp and 800 Nm (590.0 lb-ft) - Electric compressor: overcomes turbo lag, enhances sprint performance Audi has set a new record time on the Sachsenring for cars with a diesel engine. The Audi RS 5 TDI competition concept rounded the 3.6 km (2.2 mi) race course in a time of 1 minute 35.35 seconds. The technology platform draws its power from a 3.0-liter V6 biturbo TDI with 320 kW (435 hp) of power and 800 Nm (590.0 lb-ft) of torque. The highlight is an electrically driven compressor.

Audi getting ready for an entire line-up of PHEV models

Despite years of researching any number of standard ICE alternatives, it's becoming clear that different automakers are starting to throw their weight behind their advanced-powertrain technologies of choice. For instance, Toyota is gearing up for its first production hydrogen fuel-cell vehicle next year. Nissan continues to preach the gospel of the battery-electric engine. For Audi, plug-in hybrids appear to be the way to go. The German automaker plans to have a plug-in hybrid version of every one of its models by the end of the decade, UK's Autocar reports, citing comments Audi research and development head Ulrich Hackenberg made at a recent launch event for the A3 Sportback E-Tron. Hackenberg spelled out two variants of the powertrain, including one front-wheel drive version that pairs an electric motor with a 1.4-liter gas engine (this is the version used in the A3), and another to be used for four-wheel-drive vehicles in which an electric motor drives the rear wheels. We couldn't get more information from Audi representatives here on the A3 Sportback E-Tron launch ourselves, and an Audi spokesperson said in an e-mail to AutoblogGreen that the company wasn't commenting further on its plans for plug-in hybrid powertrains in more models. Audi has started pre-sales of the A3 Sportback E-Tron in Germany, pricing the car at about $51,000 with deliveries to start sometime this winter. The vehicle puts out 204 horsepower and can go as far as 31 miles on electric power alone. An exact date has not been set for importing that plug-in to the US, but it will happen some time next year.