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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.

Audi pins hopes on 2016 R18 Le Mans prototype

Down but not out, Audi is carrying forward its endurance racing program with the new R18 you see here. Unveiled on Saturday at the Audi Sport Finale end-of-season event in Munich, the new LMP1 is billed as the company's its most powerful and efficient race car yet. And it has been thoroughly redesigned to bring the Four Ring brand back to the winner's circle. Though technical details remain a closely guarded secret, Audi says that the latest evolution of the R18 (now apparently labeled sans the E-Tron Quattro) benefits from revised aero, lightweight construction, and "a modified hybrid system with lithium-ion batteries for energy storage, plus an efficiency-optimized TDI engine." That spells the end of the mechanical fly-wheel setup of the previous version, but sticks to the diesel fuel that Audi has championed instead of the gasoline favored by rivals Porsche and Toyota. With all its revisions, Ingolstadt undoubtedly hopes this latest version will perform better than the last. This past season was the worst Audi has endured since 2009. Its sister company Porsche beat it to both the drivers' and manufacturers' titles in the FIA World Endurance Championship and to the winner's circle at the 24 Hours of Le Mans. That marked the second straight year of defeat in the championship, following Toyota's domination last season, and marked only the third time Audi was defeated at Le Mans since 2000, following Bentley's win in '03 and Peugeot's in '09. In order to avoid costly inter-agency arms race, Audi and Porsche have agreed to each field two entries instead of three in both the championship and the headline race in Western France. Audi has yet to confirm its driver lineup, but Porsche has revealed its lineup consisting of defending champions Timo Bernhard, Brendon Hartley, and Mark Webber in one car, and Romain Dumas, Neel Jani, and Marc Lieb in the other. That leaves out the Le Mans-winning trio of Nico Hulkenberg, Nick Tandy, and Earl Bamber, with the former already counted out due to an F1 conflict. More powerful and efficient than ever before: Audi R18 celebrates world premiere in Munich - New hybrid race car for the 2016 Le Mans 24 Hours - Unchanged driver line-up in the DTM - High demand for new Audi R8 LMS GT3 sports car The brand with the four rings will be entering the 2016 motorsport season with the most powerful and efficient race car Audi has ever built.

Weekly Recap: Car-pedestrian crashes remained elevated in 2014

The death of American Horror Story: Freak Show star Ben Woolf served as a reminder this week that car crashes involving pedestrians remain a problem, and a new study issued on Thursday reinforced that the situation isn't really getting better. The Governors Highway Safety Association found a slight decline, 2.8 percent, in the number of pedestrian deaths in the first six months of 2014. Fatalities dropped from 2,141 to 2,125 compared with the same period in 2013, though the association says it's a statistical wash when factoring in undercounting. Deaths are still 15-percent higher than in 2009. "The number of deaths remains relatively high and is cause for concern," wrote Allan Williams, who compiled the report and is the former chief scientist at the Insurance Institute for Highway Safety. This is the first look at data from last year, and the National Highway Traffic Safety Administration will issue its full-year results later. The GHSA found some progress on the roadways, as 24 states and the District of Columbia reported drops in pedestrian deaths. In some states, the problem isn't even a problem at all: Nebraska and Wyoming reported one fatality apiece, though large population centers in urban areas are where most accidents occur. "This is a clearly a good news, bad news scenario," Jonathan Adkins, GHSA executive director, said in a statement. "While we're encouraged that pedestrian fatalities haven't increased over the past two years, progress has been slow." Other News & Notes Cadillac previews CT6 during Oscars Cadillac previewed its upcoming flagship sedan, the CT6, in commercials that aired Sunday during the Oscars. As expected, the creased sedan carries on Cadillac's recent design language, and the car in the commercial looks like a larger version of the CTS and ATS sedans. The CT6 will be revealed this spring at the New York Auto Show and launch late this year. It will be assembled at General Motors' Detroit-Hamtramck factory on a rear-wheel-drive chassis, and the CT6 is the first car to use Cadillac's revised alpha-numeric naming scheme. The commercials also kicked off Cadillac's "Dare Greatly" campaign, which is the first with its new advertising agency, Publicis Worldwide. Honda unexpectedly changes CEOs Honda unexpectedly announced this week that it will change CEOs. Current chief Takanobu Ito will step down in June and be replaced by company veteran Takahiro Hachigo.