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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.

Cost-cutting measures put VW Beetle in jeopardy

Volkswagen is on a mission to cut costs. That means producing more models across its various brands based on the same platforms and powertrains, but the latest word from Germany has it that it will also mean cutting some of the VW brand's less successful models. First on the chopping block, according to German publication Der Spiegel, is the three-door version of the Polo, which will reportedly cede its place to the five-door version exclusively. The elimination of that model alone is said to save VW a good 200 million euros, putting it on its way towards reducing the brand's costs by a targeted five billion euros. The Polo isn't the only one in danger, though. The Eos, as we know, is not due to be replaced, but the future of the Beetle could be in jeopardy as well. The Beetle may be one of VW's most iconic models, but is hardly its most successful in terms of sales. With the 2014 annual report due to be released shortly, the last full-year sales figures had Volkswagen selling 109,517 Beetles in 2013. That may be more than four times the number of Scirocco models it sold, but hardly puts a dent in the 871,413 Jettas, 824,629 Golfs and 725,291 Polos it sold during the same year.

Ecotricity offering 1,000 free EV miles to new customers

Ecotricity is offering electric vehicle drivers in the United Kingdom an lengthy incentive for using green energy: 1,000 miles of free fast charging per year. Called "Green Electricity + Car," the program will power customers' homes with renewable power allow them to charge their cars through Ecotricity's national network of fast chargers, which the company has named the Electric Highway. It makes complete sense for Ecotricity. "To get the greatest environmental benefit from an electric car, it needs to be charged using 100 percent green electricity from the wind and the sun – otherwise you're still powering it from dirty fossil fuels," wrote Dale Vince, founder of Ecotricity. Ecotricity, a UK-based producer of green energy, wants to bring fast charging to 90 percent of highway service stations around the UK in the near future and four fast chargers are installed per week under the Electric Highway campaign, the company says. Users can fast charge their EVs in 20-to-30 minutes. Ecotricity recently instituted a price freeze for all gas and electricity customers until April 1, reducing energy costs below what's being billed by the country's "Big Six" energy companies. Green Electricity + Car coincides with Volkswagen bringing its electric e-Up! to the British market. Volkswagen Group (UK) Limited imports VW, Audi, SEAT and Skoda brand vehicles and has signed a deal with Ecotricity as its official green energy supplier. Volkswagen Group customers purchasing an EV through one of its brands can take advantage of a new, reduced-cost Ecotricity tariff and a free smart meter installation. 08 February 2014 Green Electricity + Car Drivers of electric cars will receive 1,000 free miles every year with a new electricity tariff being launched by green energy company Ecotricity. Green Electricity + Car – will not only power customers homes with green energy but also their cars (either 100% electric or plug-in hybrids), plus they'll get free access to Ecotricity's national network of fast chargers[1] – the Electric Highway. This latest move comes after Ecotricity announced a price freeze for all gas and electricity customers until the end of winter (April 1st), making them cheaper[2] than the standard tariff of the Big Six energy companies.