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Volkswagen might cut 40 models across brands to save cash

Volkswagen once set out to pass Toyota and General Motors and become the largest automaker in the world. Following months of fallout from the diesel emissions scandal, the manufacturer is rumored to be dropping around 40 models from its company-wide lineup. According to German business and finance publication Handelsblatt, the Volkswagen Group is looking to slim down and remove a number of low-volume vehicles from various lineups. The company currently sells around 340 models across brands that include Audi, Lamborghini, and Bentley. Volkswagen is refusing to comment, but Handelsblatt claims to have sources within the company. Last week, Volkswagen Group CEO Matthias Muller announced a new strategy for the company that includes a major focus on electric vehicles and new technology services. During his announcement, Muller said the company would be cutting a number of models, but at the time no numbers, models, or brands were discussed. Despite comments to the contrary, rumors have persisted since late last year that Volkswagen was looking to sell commercial truck and bus manufacturer MAN. Volkswagen owns truck and bus manufacturer Scania, so even if it dropped MAN, the company would still have a foothold within the bus and truck market. There is also talk of the company selling Italian motorcycle manufacturer Ducati, which Volkswagen acquired via Audi in 2012. The company's image has taken a huge hit in the wake of the diesel scandal. Volkswagen has set aside cash in order to pay fines and may be looking to sell these several subsidiaries and cut low-volume models in order offset the costs. Despite the scandal, the company led worldwide sales in the first quarter of 2016. The same was true in 2015, but sales tanked at the end of the year following the diesel revelations. Related Video: Rumormill Audi Bentley Volkswagen Ducati

Bentley planning new Le Mans prototype for LMP2 class

Word has it that Bentley is planning a new Le Mans prototype racer. Speaking with Bentley chief Wolfgang Durheimer, Autocar reports that a new LMP2 project is underway at Crewe. The program would be run in-house instead of outsourced to a partner racing team. But while the prototype would likely use the company's 4.0-liter twin-turbo V8, the chassis by necessity would have to be outsourced: the three major sanctioning bodies recently got together to approve Dallara, Oreca, Riley-Multimatic, and Onroak exclusively to supply LMP2 chassis, so Bentley would have to base its design around one of theirs. The British automaker might have a number of reasons for restricting itself to the LMP2 class. Chief among them is likely the presence of both Porsche and Audi in the top-tier LMP1 category, and parent company Volkswagen's likely reluctance to send another one of its brands into the same fight. Another is budget: developing and fielding a competitive LMP1 program can be as costly as running an F1 team, whereas the prospect of sourcing and adapting an LMP2 chassis from an approved supplier would cost Bentley far less. But another factor not to be discounted is that Bentley may be choosing its battles carefully. Where the LMP1 prototypes are constricted largely to Le Mans and the FIA World Endurance Championship of which it is part, there are several series that top out at LMP2 – most notable the IMSA SportsCar Championship where Bentley is tipped to focus first, but also in the European Le Mans Series and Asian Le Mans Series. In fact [SPOILER ALERT] an LMP2 entry just won the 24 Hours of Daytona for the first time, beating out the Daytona Prototypes against which they compete. Those are bragging rights that Bentley could be keen to capture, and if it plays its cards right, it could sit out the LMP2 class at Le Mans and in the WEC altogether, rather than compete for second-tier victory behind its big brothers in LMP1. That would make this program radically different from the last time Bentley built a Le Mans prototype. In the early 2000s, Bentley fielded successive versions of the Speed 8 (pictured above) with a little help from Audi, winning the 24 Hours of Le Mans outright in 2003. The company then shut down the program, only to return to racing with the Continental GT3, developed with longtime Ford rally partner M-Sport and offered to privateer teams.

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.