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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.

Volkswagen reportedly to name Matthias Muller CEO

Porsche chief executive officer Matthias Muller is expected to be named CEO of Volkswagen AG, the Wall Street Journal and other sources reported Thursday morning. Muller, 62, has led Porsche since Oct. 1, 2010, and jumpstarted the sports-car brand's expansion around the world. He replaces Martin Winkerkorn, who stepped down Wednesday amid the company's worsening diesel scandal. At least three more executives are also expected to be fired, including Volkswagen's US chief and the heads of Audi and Porsche research and development. Both brands are divisions of VW. A US spokesman wouldn't confirm the reports. An official announcement is expected at VW's board meeting on Friday. Muller's ascension caps a stunning week of turmoil for Volkswagen, which manipulated software to make its diesel-powered vehicles appear cleaner during testing that they are in real-world driving. The charges were revealed last week by the EPA, which cited the work of researchers at West Virginia University. About 482,000 vehicles are affected in the United States, which will be subject to recall, and VW estimates about 11 million of its vehicles around the world have the rigged software. The well-regarded Muller was viewed as a front-runner for the job even before Winterkorn stepped down. Before helming Porsche, he oversaw all vehicle projects globally for VW from 2007-2010. Previously, he was in charge of the Audi and Lamborghini product lines, and earlier in his career was responsible for the Audi A3 program in the 1990s. He joined Audi in 1977. He's trained as a toolmaker and studied information technology in Munich. His last name is sometimes spelled Mueller in English. Muller faces immediate challenges as he takes over VW's sprawling 78-year-old industrial empire, including recalls and regulatory actions around the world. In the US alone, the company faces a fine of up to $18 billion. VW, an industrial symbol of Germany, is also far larger than any unit Muller has run in his career. While Porsche sold 189,849 vehicles in 2014 globally, it's one of many VW brands. Collectively they sold 5.04 million vehicles through the first six months of this year, making Volkswagen the world's largest automaker. Related Video:

Audi stretches the A8L even more for one special European buyer

An anonymous European buyer decided that the standard Audi A8L just wasn't long enough, so this wealthy person ordered a one-off A8L Extended with six doors. It's capable of seating six people in luxury. The massive sedan now measures 20.9 feet versus 17.3 feet for the standard, already large A8L. The wheelbase also grows to 13.8 feet from 10.2 feet for the regular version. You might expect the A8L Extended to have facing seats inside like a limousine, but all the passengers actually look forward. The decision probably doesn't aid in having a conversation during the drive, but it's what the buyer wanted. The third row has an entertainment display and refrigerated storage box. The second and third rows also have power adjustable seats in beige Valcona leather. It took a year for Audi's engineers to figure out how to build this beast while retaining the A8's rigidity. The builders eventually settled on adding extruded aluminum sections to the side sills and center tunnel to get the extra length. They also included extra cross braces in the roof, and a 7.9-foot glass panel to lets more light into the cabin. The powertrain consists of Audi's 3.0 TFSI with 306 horsepower and 325 pound-feet of torque and an eight-speed automatic gearbox. The A8L Extended retains the company's Quattro all-wheel drive system and can reportedly accelerate to 62 miles per hour in 7.1 seconds. That's not lightning quick but still plenty for a vehicle that weighs 5,331 pounds. The A8L Extended likely won't remain a one-off for long. According to Audi, the customer response has been quite positive, and the company has already received requests to build more. Representative unique specimen: Audi A8 L extended Premium manufacturer develops and builds 6.36-meter (20.9 ft) sedan to special customer order One-off specimen meets same standards as production model Comfortable and spacious seating for six Audi puts the customer first, however out of the ordinary their requirements may be. An example of this is the Audi A8*: at the request of a European customer the premium brand has built a first one-off version of the sedan in king-size format. Measuring 6.36 meters (20.9 ft) in length and with a wheelbase of 4.22 meters (13.8 ft), the A8 L extended* affords top-class comfort for passengers occupying all of its six seats. A concept that generates customer: Audi has further requests for the custom product already.