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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.

VW adding particulate filters to gas engines

Volkswagen is working hard to overcome the PR disaster that is its diesel emissions scandal, and part of its efforts is focusing, weirdly, on petrol engines. Starting in June 2017, the embattled German automaker will add particulate filters to the gas-powered Volkswagen Tiguan and Audi A5. The change will eventually impact nearly every direct-injected gas engine the VW Group makes. Audi? Particulate filter. Seat? Particulate filter. Even Bentley is going to get the tech, all in a bid to reduce soot emissions by 90 percent. In fact, by 2022 VAG expects 7 million of its vehicles to boast the emissions-cleaning tech, which has long been a fixture on diesel engines. "Following increases in efficiency and lower CO2 output, we are now bringing about a sustained reduction in the emission levels of our modern petrol engines by fitting particulate filters as standard," Volkswagen Group research and design boss Dr. Ulrich Eichhorn said in a statement. "In the future, all models will be equipped with the latest and most efficient SCR catalytic converter technology." VW's initial rollout focuses on the 1.4-liter, turbocharged Tiguan and the 2.0-liter, turbocharged A5. Considering the popularity of the 2.0-liter across the VW range, we'd expect it's only a matter of time before VW expands its particulate filters tech to additional gas-powered vehicles. Related Video:

Bentley plotting rear-drive Continental GT3-R?

Coupe, convertible or Flying Spur sedan: no matter what body-style you get, or what engine you specify, the Bentley Continental comes with all-wheel drive. It's been that way since the model line was first introduced a dozen years ago. But that looks poised to change... at least for one notable exception. According to Autocar, Bentley is all but certain to launch a rear-drive version of the Continental GT3-R sometime next year, ditching the front half of the drivetrain to cut a good 440 pounds off the curb weight to make it the lightest Conti yet. The Continental GT3-R launched last year with less weight and more power, along with a stiffer suspension, upgraded brakes and a titanium exhaust. It drew its inspiration from the Continental GT3 racer, but unlike the competition version, kept the AWD drivetrain in place. "A lot of people expected the GT3-R to be a proper rear-wheel-drive sports car," Bentley's chief engineer Rolf Frech said to Autocar, "but the problem was timing. We needed the car at the end of the first season of our GT3 racing car, and to do a proper change of the complete powertrain needed longer than we had. But we have the concept in our mind, so why not?" Denuded of its all-wheel drive, the Conti GT3-RS – assuming Porsche doesn't mind lending the name to its sister company – would be the most hardcore version of the go-to luxury coupe, and would promise to cut its already blitzkreig 3.6-second 0-60 time down even further. Especially if the 4.0-liter twin-turbo V8 were tuned to deliver even more than the 572 horsepower and 516 pound-feet of torque it already kicks out in the existing GT3-R. Chances are it'd be even less accessible, though: the 99 examples of the Conti GT3-R that are coming to the States out of the 300 total to be made already carry a $337k sticker price, and the rear-drive model would likely push the production:price see-saw even higher to the right.