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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 A6 and A7 get a fresh face and upgraded equipment

It's been six years since the introduction of the Audi A6 and A7, but the automaker isn't ready to replace them just yet. So, in order to keep up with fresher competition, Ingolstadt has given its mid-range lineup a bit of a refresh. That includes not only a subtle facelift, but some new equipment, as well. The refreshed models benefit from new front-end styling, side sills, rear bumpers, and rear diffusers that look incrementally sharper than the existing versions. The updated interior features LED ambient lighting, with new trim options to join the expanded range of exterior colors and wheel choices. The infotainment system has been upgraded, and there are tablets mounted to the seatbacks to keep rear-seat passengers entertained. The sum total definitely falls in the evolutionary rather than revolutionary category. But they promise to help attract customers to Audi showrooms who might otherwise be lured towards the newer Mercedes E-Class, Cadillac CTS, Jaguar XF, or Maserati Ghibli, while keeping pace with the BMW 5 Series and Lexus GS that are growing just as long in the tooth. The updates are applied not only to base A6 and A7 models, but also to the Allroad Quattro and the S6 and S7 performance models. Audi says these refreshed cars will be available to order soon for delivery in the summer, and best of all, it hasn't raised the sticker prices in the process. Related Video: 04/22/16 Ingolstadt New look and new equipment – Audi A6 and A7 getting even more attractive - New highlights for exterior and interior and for equipment - Even more connectivity and entertainment on offer - Comprehensive equipment package for the Audi A6 allroad quattro Audi is making its full-size A6 and A7 Sportback* car lines even more exclusive. The exterior of the Sedan and Avant is set to become a touch sharper, with all models featuring interior enhancements and new equipment. There is a new, comprehensive equipment package for the A6 allroad quattro*. The updated full-size family is available to order worldwide soon. Deliveries will take place in the summer. Quality, design and technology – those are the key selling points for Audi full-size models. With the start of the new model year, the brand is further enhancing its models.

Car Club USA: Waterfest

Car Club USA travels back to Englishtown Raceway Park for Waterfest, a celebration of water-cooled Audi and Volkswagen cars. We catch up with a pair of VW autocross contestants racing for top prize, and a young Audi owner hoping to win best in show for the Garden State Euros car club. "It's massive," explained Garden State Euro's Ryan Topken. "You have tons of vendors, tons of events going on. There's the show. There's the drag strip. There's autocross." "It's pretty much like a frat party for Volkswagens," added fellow club member Carlin Belkowski. Will the guys from Garden State Euros head home with any hardware? Each Car Club USA episode features a different car club or event from across the US, where passionate owner communities gather to share automotive experiences and embark on incredible adventures. From Main Street cruises to off-road trails, catch all the latest car club activity on Autoblog.