2009 Bentley Flying Spur, 4 Dr Sedan on 2040-cars

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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.

Baby Bentley studied for 2020, but it might not be cheaper

Bentley may step down a segment with a new, smaller luxury car that it hopes to have ready by 2019. The British luxury marque's fifth model line, assuming that its SUV ever makes it to market, though, is still in the earliest planning stages.
Kevin Rose, Bentley's head of sales and marketing, spoke with Autocar at the Geneva Motor Show about the proposed new vehicle. "At the moment, our line of thinking is for a smaller car. But smaller doesn't necessarily mean cheaper," he said. The brand believes the price floor of its models should be 100,000 pounds ($167,240).
The smaller Flying B isn't the only project being worked on. Rose hinted that it is considering an even more expensive model above the Mulsanne priced at around 300,000 pounds ($501,735) that would compete with the Rolls-Royce Phantom. "The twin pillars of the Bentley brand are performance and luxuriousness. Any car that offers something unique, with both of those bases well covered, is on the table," he said.

New Bentley boss nixes any new sports cars in its money-losing lineup

Adrian Hallmark took over the helm at Bentley on February 1 this year. Volkswagen poached him from Jaguar, where he headed the brand's global strategy. Or perhaps we should say re-poached him, since Hallmark served as Bentley's board member in charge of sales and marketing from 1999 to 2005, and helped guide the original Continental GT to market. He's now responsible getting Bentley in better shape financially and sales-wise, and positioning it for growth. Among the products necessary to do that, Hallmark recently told Autocar that flashy coupes won't cut it. "I'll tell you what we won't be building," he said, "and that's sports cars." That means we can forget about the gorgeous EXP 10 Speed 6 coupe that had a rumored place in the lineup after a sub-Bentayga CUV, and the EXP 12 Speed 6e battery-electric convertible. Hallmark cited a few issues with the segment, the first being that the segment hasn't yet recovered from the recession, and the buyer demographic that's left goes up in age every year, clearly a losing game. The kinds of younger buyers who would buy Bentleys, athletes and entertainers, are deterred from the purchase by contractual limitations like injury clauses or aversion to paparazzi photos. As well, in China, wealthy buyers get SUVs or limousines, but Hallmark believes Bentley hasn't adopted the the proper strategy there to take advantage. This is far more than about sports cars for Bentley, though; a recent article in German newspaper Handelsblatt outlined a number of situations the carmaker needs to rectify, including the finding that Bentley's "losing money hand over fist instead of racking up the hefty margins more typical of the class." A German study claimed that whereas Ferrari makes around $80,000 on every car it sells, and Porsche makes a little more than $19,000 on each car (last year it was a little more than $17,000) Bentley loses a little more than $19,000 on each unit. The English manufacturer has posted an operating loss of roughly $92 million through the first six months of 2018, the latest figures in a decline that began in 2014. That financial timeline, however, coincides with Bentley's $1.1B investment in new technologies, which the carmaker cites as the reason for profitability woes.