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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.

Baby Bentley studied for 2020, but it might not be cheaper

Bentley may step down a segment with a new, smaller luxury car that it hopes to have ready by 2019. The British luxury marque's fifth model line, assuming that its SUV ever makes it to market, though, is still in the earliest planning stages.
Kevin Rose, Bentley's head of sales and marketing, spoke with Autocar at the Geneva Motor Show about the proposed new vehicle. "At the moment, our line of thinking is for a smaller car. But smaller doesn't necessarily mean cheaper," he said. The brand believes the price floor of its models should be 100,000 pounds ($167,240).
The smaller Flying B isn't the only project being worked on. Rose hinted that it is considering an even more expensive model above the Mulsanne priced at around 300,000 pounds ($501,735) that would compete with the Rolls-Royce Phantom. "The twin pillars of the Bentley brand are performance and luxuriousness. Any car that offers something unique, with both of those bases well covered, is on the table," he said.

Bentley to retire aging 6.75-liter V8 with current Mulsanne

The massive 6.75-liter V8 in the Bentley Mulsanne is one of the oldest engines still in production. But it may not be around for much longer. According to Car and Driver, Bentley intends to finally put the big old pushrod V8 to pasture once the current Mulsanne is phased out, thus putting an end to a saga that goes back some 57 years. Powerful as it may be, ever-stricter exhaust emissions and fuel-consumption regulations will see that the L Series V8, originally introduced way back in 1957, doesn't stay in production forever. Whenever the Mulsanne is replaced, it will reportedly get a brand-new twelve-cylinder engine. Bentley is currently the world's largest producer of dozen-pot powerplants. Production of the British automaker's 6.0-liter twin-turbo W12 far outpaces anything from Rolls-Royce, Mercedes-Benz, BMW, Ferrari, or Lamborghini. Over the decades since its introduction, Bentley's long-serving V8 has gone from making an "adequate" amount of power and torque to an impressive 530 horsepower and a positively massive 811 pound-feet (with the help of a couple of turbochargers). Its eventual discontinuation wouldn't be the first attempt on the life of the 6.75-liter engine. When BMW briefly took control of both Rolls and Bentley, it replaced the big engine by a smaller 4.4-liter V8. Customer demand led Bentley to bring the old engine back. It will likely be some time before we get details of Bentley's next powerplant. Models like the Mulsanne and Rolls-Royce Phantom tend to stick around for a long time, and the latest version of Bentley's flagship was just released earlier this year. Related Video: