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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 design getting big overhaul?

Car and Driver has an update on the design shuffle in Ingolstadt that will ultimately bring more differentiation to Audi products. Last November, Audi design chief Wolfgang Egger spoke of the need to do "something new without breaking from tradition" in Audi design, but talk at the time centered on how the Crosslane Coupe Concept would influence the new looks of the brand's Q cars. The most recent moves appear focused on passenger cars, with designers from Volkswagen Group kin like Bentley and Seat moving to Audi, and outsiders from Alfa Romeo moving in.
While Egger decreed the end of "scalable design" to CD, last November's report said there would be more technology and "greater visual cohesion" between interior and exterior design. We still have no idea what all this means nor when we'll see visible changes in production, but at least we know there's something being done behind the scenes.

Mattias Ekstr?m unleashes bonkers 600-hp Audi S1 Supercar on World RX

Mattias Ekström doesn't need to prove anything. He's won the DTM title twice and before that the Swedish Touring Car Championship. But being a racing driver as he is, Ekström has been looking for new challenges. He's contested the Swedish Rally six times, the German Rally twice, he's driven in V8 Supercars and in NASCAR. He's even won the Race of Champions. Twice. Heck, we're surprised his long-time sponsor Red Bull hasn't let him try out one of its F1 cars. But this season it's on to a new challenge: the inaugural FIA World Rallycross Championship.
Ekström drove a Volkswagen Polo fielded by Marklund Motorsport in the Swedish rallycross round last season and came in second, but this year he's diving in head-first with his own team and his own car. His outfit EKS is hard at work preparing the new Audi S1 for competition in the World RX Championship, and will field two of them this season: one for Ekström and another for JWRC champion Pontus Tidemand.
Built to compete in the top category of the championship, the EKS Audi S1 Supercar will pack a 2.0-liter turbo four with 600 horsepower, all-wheel drive and a 0-60 time of 1.9 seconds. It's expected to make its debut late in May at the World RX of Great Britain where it will have to tangle with specially prepared versions of the Citroën DS3, Ford Fiesta ST and Peugeot 208 driven by the likes of Tanner Foust, Ken Block, Jacques Villeneuve and Petter Solberg. The sole North American round will be held in Trois-Rivières, Quebec, in early August, on the same circuit that once hosted Indy Lights, ALMS, Grand-Am, Can-Am and Trans-Am races.