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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.

Bentley's Bentayga Mulliner takes two-tone to a new level of excess

Because a normal Bentayga just isn't enough for some people, Bentley revealed its most exclusive SUV yet, the Bentayga Mulliner. Now this isn't a wild custom model like the Mulsanne Grand Limousine by Mulliner. Rather, this is like past special-edition Mulliner cars including the standard-length Mulsanne, and the Continental GT, which featured some unique trim and detail touches. Immediately apparent is the two-tone paint scheme. This is a new option that will be introduced on the Bentayga Mulliner, but will trickle down to the rest of the lineup this April. In addition, this special Bentayga comes with exclusive 22-inch wheels with floating centers to keep the badge upright, a la Rolls-Royce wheels. Bentley also adds unique badging and standard color-coordinated lower body extensions, while the lower grilles are finished in chrome. The car that will be on display at the Geneva show will feature a special marquetry inlay up front showing the Monte Rosa mountain range. The two-tone scheme of the exterior is continued inside, with the front and rear seats upholstered in different colors of leather. In the Bentayga above, black leather covers the front seats while the rears are done in an ivory-colored hide. The seats all feature two colors of contrast stitching, as well. Even the wood veneers are finished in an exclusive dual tone. On the dash, the wood is completely black, but along the front doors, it fades to a natural finish that is continued on the rear doors. Breaking from the obsession with multiple colors, the Bentayga Mulliner also features a wine bottle cooler and crystal champagne flutes. You could put rose in one if you're really not into matching, though. If even these upgrades don't do it for you, there are a couple other special options available. Bentley offers the Linley Hamper by Mulliner, which is a pretty serious picnic basket featuring Linley china and silverware, as well as a refrigerator. This special Bentayga can also be ordered with the Mulliner Tourbillon automatic clock by Breitling, which the BBC reports was a $160,000 option when introduced during the SUV's debut. Bentley will begin taking orders this spring, though pricing for the SUV was not released. Expect it to cost a good chunk more than the standard model's $229,100 base price. Related Video:

Volkswagen profit jumps as it warns of a cooling auto market

FRANKFURT, Germany — Volkswagen says its profits jumped 44% in the third quarter thanks to a more profitable mix of vehicles in its lineup but warned that global car markets are slowing more than expected and lowered its forecast for annual sales. After-tax profit rose to $4.42 billion (3.98 billion euros) as revenues rose 11% to $68.27 billion (61.42 billion euros). The sales margin of 7.8% exceeded the goal of 6.5-7.5% as vehicles bringing higher profits took a larger share of sales. The Wolfsburg-based automaker pointed to the headwinds facing the industry by saying that it expects "vehicle markets will contract faster than previously anticipated in many regions of the world." It said sales would be "on a level" with last year's record of 10.8 million vehicles. Previously it had expected a slight increase. The company said its profits would be in the lower end of its forecast range. Global automakers are facing a slowdown in sales amid disputes over trade and from pressure in the European Union and China to develop and sell low-emission vehicles that require heavy investment in new technology. Ford and Renault have issued profit warnings in recent days, while Daimler, maker of Mercedes-Benz luxury cars, lost money in the second quarter and is expected to outline a cost-cutting strategy for investors on Nov. 14. Volkswagen is leading the push into electric vehicles in Europe by launching its ID.3 battery-powered compact car at prices it says will make zero local emission vehicles a mass phenomenon. The company was able to increase earnings in the quarter despite an 18% rise in spending on research and development.