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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's Project Artemis woes could delay range of VW Group EVs

Two years ago, Audi's then new CEO Markus Duesmann announced his first big initiative called Project Artemis. The plan's marquee component is "to implement a new lighthouse project for Audi in record time," being "a highly efficient electric car scheduled to be on the road as early as 2024" on a brand new platform that would be shared with Porsche and Bentley. An ex-VW and -Porsche man named Alex Hitzinger, who'd also spent time at Apple working on the tech company's electric car, was brought on board to lead Project Artemis and come up with new ideas. Parent Volkswagen Group said it wanted to become "as agile as in a racing team," removing the bureaucratic molasses and bottlenecks interfering with getting the best product on the road in the best time. However, in any grand venture, failure comes before success. Automobilwoche reports that Artemis is struggling through issues large enough to push the product plans back by years. The issue, as it was with the ID.3 lineup on the eve of that car's launch, is software. Well, that's the latest, largest problem; Artemis has already been through copious struggles before getting to the software bit. Two months after Hitzinger came on, in December 2020, VW raised its EV volume target from 50% to 70% by 2030. That necessitated a rethink of the VW Group's entire platform strategy considering the far greater production scale. Hitzinger only lasted six months in the job, ousted in May 2021, supposedly because Audi believed his ideas were "not suitable for profitable series production" among other reasons. By that time, the pace of software development was already said to be six months behind schedule, with the Car.Software division working on VW.OS 2.0 "not yet running at the speed hoped for." Internal frictions were noteworthy and costly as well. VW's commercial division plant in Hanover was meant to build Artemis vehicles for Audi, Porsche and Bentley, but Automobilwoche reported in January of this year that Porsche paid a ""small three-digit million amount" — like $100 million or so — to get out of the deal mandating its vehicles come from the Hanover facility.    So Audi effectively brought Artemis in-house to lead vehicle development, and Car.Software turned into Cariad to get VW.OS and VW.AC, which stands for Automotive Cloud, to market.  The first Audi vehicle under Project Artemis was planned to arrive by the end of 2024, a production version of the Grandsphere concept.

Bentley Mulliner Bacalar is so bespoke, it's a whole different car

Bentley talks a lot about “bespoke” — the customized elements done at the hands of its Mulliner division — but the newly unveiled Bentley Mulliner Bacalar takes the idea to a new level. This isnÂ’t just a unique paint color or a special upholstery fabric or a fabricated housing for an ownerÂ’s pet ferret. ItÂ’s a completely custom-bodied automobile, one that transforms the Continental GT convertible into a restyled two-seat roofless barchetta, which takes its name from a lake in MexicoÂ’s Yucatan Peninsula. Bentley claims that not a single exterior body panel from the Continental GT remains unchanged on the Bacalar, and the design is said to be inspired by last yearÂ’s EXP 100 GT concept. That show car was a coupe with scissor doors and an electric powertrain. The Bacalar is none of those things. But you can see some rub-off from the EXP 100 GT in the detailing, such as the horizontal lighting elements at the front and the rear. This example wears special Yellow Flame paint that incorporates the ash from burned rice husks as a more environmentally friendly way to create a metallic effect. In the Bentley Mulliner Bacalar, the doors and fenders are made from carbon fiber, while the clamshell covering over the rear compartment is aluminum. The body panels feature additional air intakes, a double hump behind the front seats, and more pronounced rear haunches over the 20-mm wider rear track. There is no roof — presumably owners will drive one of their dozens of other cars if rain is predicted. It would be a shame, after all, to let this interior get wet. The BacalarÂ’s cabin has just two seats, with a carved-out luggage hold behind each one that is specially designed to fit custom-matched bags made by Italian luggage maker Shedoni. The reworked center console angles up to meet the dash, which contains BentleyÂ’s Rotating Display and a digital instrument cluster that differs from that of production Bentleys. The seats are upholstered in British wool together with two types of leather, and the wool elements also appear on the console and door panels. The wood trim — in both matte and gloss finishes — is sourced from 5,000-year-old trees harvested from rivers, lakes and peat bogs. The 6.0-liter twin-turbocharged W-12 engine is massaged to the tune of 650 horsepower and 667 lb-ft of torque (versus 626 ponies and 664 lb-ft in the Conti GT). The W-12 is paired with an eight-speed dual-clutch automatic transmission and rear-biased all-wheel drive.