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The hot hatch without a hatch | 2017 Audi S3 First Drive

The 2017 Audi S3 is a car without equal. That might end up on a billboard, but it's actually meant quite literally, as in the S3 has no direct competitor. Other compact luxury sedans, of which there are few, can't match its performance. The BMW 2 Series has two doors, plus it's rear-drive. The bonkers Mercedes-AMG CLA45 is on another power and price planet altogether. The mechanically related VW Golf R isn't a luxury car and has a hatch instead of a trunk. And so the S3 exists as an oddity. But it's a fun oddity, and a well-made one too. For 2017, it receives a number of noteworthy changes to keep it fresh and technologically relevant. Most also apply to the 2017 Audi A3, the car on which it's based, which itself gets a new 2.0-liter turbo four base engine in place of the old 1.8-liter. Paired with front-wheel drive and essentially a variation of the Quattro model's carry-over 2.0-liter, it produces 186 horsepower (up from 170) and returns 29 mpg combined (up from 27). That revamped A3 wasn't on hand for the press drive in Durham, North Carolina, so we were not-at-all stuck with the 2017 S3. Its own 2.0-liter turbo four is unchanged, still pumping out 292 hp and 280 pound-feet of torque through a six-speed DSG dual-clutch automatic transmission. Audi says it'll hit 60 mph in 4.7 seconds, which is a full second quicker than the 220-hp A3 Quattro as well as about a half-second quicker than the Audi A4 Quattro. That bonkers CLA45 is around the four-second mark. Indeed, having so much power in such a small sedan is a novel and grin-inducing experience. The throttle response is sharp enough in standard mode, but tap the dash-mounted Audi Drive Select toggle to choose Dynamic, and it comes even more alive, eagerly shooting the S3 forward with the merest hint of a toe wiggle. The DSG is also quite happy to downshift when called upon, either by said toe or by itself when under braking. Blipping down two gears when heading into a corner is commonplace here, as are the sharp little barks that emanate from the S3's quad exhaust tips. And then there's the S3's Quattro all-wheel drive, which has been updated for 2017 with the same performance-oriented system found in the TT and TTS. Although its front/rear torque split is constantly changing based on current traction conditions, it nevertheless skews towards a rear torque bias to the point that, when in Dynamic mode, it won't reduce power in oversteer situations.

The Volkswagen Group switches official language to English

The Volkswagen Group can't be fairly thought of as entirely German anymore, so the news that the company is switching its official language to English to help attract managers and executives is a rational, if surprising, decision. While many VW Group companies are still staidly German in character and culture, consider the other companies that it controls: Bentley (British), Bugatti (French), Ducati and Lamborghini (Italian), Skoda (Czech), Scania trucks (Swedish), and SEAT (Spanish). Not to mention the large Volkswagen Group of America operation, which constructs cars in Chattanooga, TN. Volkswagen's explicit motivation is to improve management recruitment – making sure the company isn't losing out on candidates for important positions because they can't speak German – and that's inherently sensible in a globalized economy. Particularly considering, like it or lump it, that English is the lingua franca of said global economy. It also should make it inherently easier to communicate between its world-wide subsidiaries and coordinate operations. It's hard to say for sure if this will have any impact on the consumer, although it's easy to see the benefits if, say, VW Group hires some American product planners or engineers and they push for features and designs that more closely suit American needs. After all, the US is a hugely important market for any manufacturer, and so the switch to English almost certainly has something to do with the outsized influence of the US in the global economy. And there doesn't seem to be a downside from a purely rational perspective, although it could mean that the Group's corporate culture becomes less German. Whether that's a good or a bad thing depends on your perspective. Related Video: Image Credit: Krisztian Bocsi/Bloomberg via Getty Images Plants/Manufacturing Audi Bentley Bugatti Porsche Volkswagen SEAT Skoda

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.