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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.

Exotic cars caught on video racing on neighborhood streets in Beverly Hills

A pair of supercars caught on camera racing around a quiet Beverly Hills neighborhood last week has residents fearing for their safety. The video shows a white Porsche 911 and a yellow Ferrari LaFerrari as they clipped parked cars and blew through stop signs while residents of the upscale community watched in horror. Freelance cameraman Jacob Rogers shot the video of the supercar shenanigans. He later confronted a man outside the house where the Ferrari eventually parked. He asked the man if he cared that he was endangering people's lives. The man became combative and claimed he had diplomatic immunity. "He told me verbatim, 'I could have you killed and get away with it,'" Rogers told NBC Los Angeles. "I told him, 'the press is allowed to be here on the sidewalk on a public street.' He said, '(Expletive) America' and threw a cigarette at me." The Ferrari's plates are from the oil-rich country of Qatar. The race ended with the Ferrari pulling into the driveway of a $45,000-per-month rental home, its engine compartment smoking. Police can be seen arriving in the neighborhood. Los Angeles police are currently investigating the incident. Even though the LaFerrari was still smoking when police arrived they haven't filed charges because no officer witnessed the illegal activities. When police approached the owner of the vehicle he denied doing anything illegal and again claimed diplomatic immunity. Police told NBC they are in contact with the State Department about the man's diplomatic status and the legality of the cars in the neighborhood. Beverly Hills isn't the only swanky zip code plague by hotshot supercar owners. Some of the most expensive homes in London can be found In the Knightsbridge neighborhood - and some of the most expensive cars as well. This summer, the local council of Knightsbridge and nearby Chelsea began exploring a Public Space Protection Order that would fine drivers who rev their engines, drag race on residential streets or blare music, according to Reuters UK. News Source: NBC Los Angeles Government/Legal Ferrari Porsche Racing Vehicles Supercars Videos illegal

Porsche 911 GT2 test mule caught in the snow

This may look like a weird, cobbled-together Porsche, but insiders tell us we're actually looking at the forthcoming GT2. Maybe even a GT2 RS. Those schooled in the intricacies of Zuffenhausen nomenclature will be suitably excited by now. But for the rest of us, the GT2 (with or without the RS) represents the pinnacle of the most hardcore 911s. It's essentially a 911 Turbo without the all-wheel drive but some other goodies thrown in – or to put it another way, it is to the Turbo what the GT3 is to the 911 Carrera. Porsche first did a 911 GT2 back in 1993 based on the 993-generation model. It then did another based on the 996, and then on the 997. But the last one we saw was the GT2 RS that came out in 2010, packing 612 horsepower channeled exclusively to the rear wheels through a six-speed manual transmission. The German automaker didn't do a GT2 version of the 991, but now that the entire model line is undergoing a transformation – and an near-complete switch to turbo power – it apparently has another one in store for us. Aside from ditching the Turbo's all-wheel drive, the new GT2 will be lighter and pack more power – as much as 700 hp, from what we hear. As you can see from the spy shots, the test mule spotted romping in the snow is also wearing larger exhaust tips and the signature GT2 RS black hood. Expect the finished product to wear its own shoes and a more extreme aero kit as well. The question on everyone's minds will be whether it will, like the latest GT3 and GT3 RS, be offered only with a dual-clutch transmission, a conventional manual, or the buyer's choice of either. We'll find out sooner or later as the most extreme of Elfens is tipped to surface late next year. Related Video: