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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 wants to tattoo your car with a new paint etching process

Those tribal stickers have sort of gone out of style, so Audi has developed a new technique that allows owners to have matte, tattoo-like images etched onto their cars. While initially available on the Audi R8 and R8 Spyder, the technique can be applied to any model, and it goes on after the component has been painted. The process is relatively simple. Audi places a template on the car with the desired design - like the Audi Sport logo in the image above - and then uses a special powder to basically sandblast the paint, roughening the surface of the clear coat. The result is a matt area with a depth of just a few thousandths of a millimeter, less than the width of a human hair, that's basically a permanent decal. Audi can currently handle images up to one meter square and will accept nearly any image that doesn't violate third-party copyrights, presumably excluding any obscene image as well. Just wait for someone to test the limits on that one. The cool thing about the process is that it can be applied at pretty much any point in the car's life. This means any vehicle is a candidate for customization and that an owner could purchase the car at a dealership and have the custom graphic applied afterward. Because the powder affects the paint surface, the image is more resilient than a wrap or sticker. The new option is limited to the side blades on the R8, but Audi will be extending it to other models in the future through its Exclusive program. And while it might affect the resale value of the car, it's a heck of a lot less painful than a tattoo. Related Video: News Source: AudiImage Credit: Audi Auto News Design/Style Audi Technology Convertible Coupe Performance paint customization

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Autoblog senior editor Greg Migliore gives the highlights from the week in automotive news.