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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.

Bentley planning new Le Mans prototype for LMP2 class

Word has it that Bentley is planning a new Le Mans prototype racer. Speaking with Bentley chief Wolfgang Durheimer, Autocar reports that a new LMP2 project is underway at Crewe. The program would be run in-house instead of outsourced to a partner racing team. But while the prototype would likely use the company's 4.0-liter twin-turbo V8, the chassis by necessity would have to be outsourced: the three major sanctioning bodies recently got together to approve Dallara, Oreca, Riley-Multimatic, and Onroak exclusively to supply LMP2 chassis, so Bentley would have to base its design around one of theirs. The British automaker might have a number of reasons for restricting itself to the LMP2 class. Chief among them is likely the presence of both Porsche and Audi in the top-tier LMP1 category, and parent company Volkswagen's likely reluctance to send another one of its brands into the same fight. Another is budget: developing and fielding a competitive LMP1 program can be as costly as running an F1 team, whereas the prospect of sourcing and adapting an LMP2 chassis from an approved supplier would cost Bentley far less. But another factor not to be discounted is that Bentley may be choosing its battles carefully. Where the LMP1 prototypes are constricted largely to Le Mans and the FIA World Endurance Championship of which it is part, there are several series that top out at LMP2 – most notable the IMSA SportsCar Championship where Bentley is tipped to focus first, but also in the European Le Mans Series and Asian Le Mans Series. In fact [SPOILER ALERT] an LMP2 entry just won the 24 Hours of Daytona for the first time, beating out the Daytona Prototypes against which they compete. Those are bragging rights that Bentley could be keen to capture, and if it plays its cards right, it could sit out the LMP2 class at Le Mans and in the WEC altogether, rather than compete for second-tier victory behind its big brothers in LMP1. That would make this program radically different from the last time Bentley built a Le Mans prototype. In the early 2000s, Bentley fielded successive versions of the Speed 8 (pictured above) with a little help from Audi, winning the 24 Hours of Le Mans outright in 2003. The company then shut down the program, only to return to racing with the Continental GT3, developed with longtime Ford rally partner M-Sport and offered to privateer teams.

New Bentley interior veneer sourced from American Red Gum trees

Bentley is turning stateside for its newest exclusive wood interior finish, sourcing its first new veneer in five years from American Red Gum trees found in Mississippi wetlands. Bentley calls the new veneer Liquid Amber, a reference to the wood's perfumed scent. The red-hued wood undergoes a weeks-long natural smoking process to deepen its brown luster. Afterward, the veneer is then transported to Bentley's wood shop in Crewe, England, where it's examined alongside the six other types of veneers harvested from China to Canada to determine suitability, based on a high-burr density, minimal sapwood and a lack of bark growth or structural defects. Bentley says it rejects between 30 percent and 70 percent of all veneers offered. Raw veneer is then cut to a precise 0.6-millimeter and tested for stability in UV light and consistency from tree to tree. The whole process takes at least 18 months before the veneer is installed in one of Bentley's vehicles, which start at $189,000 for the Flying Spur sedan. Also known as the Sweetgum tree, the American Red Gum is native to lowland areas of the southeastern United States. It was once used commercially for soaps, adhesives and pharmaceuticals but is valued today primarily for use in furniture, cabinetry and interior finishing. Bentley says it harvests the trees only twice a year due to restricted access to the wetlands where it sources the wood. Bentley also announced it has begun using slate and quartzite stone veneers sourced from select quarries in India. They're split from a larger stone piece, cured using fiberglass and a bespoke resin, and shaped and finished by hand by the Mulliner coach building team in Crewe.Related Video: Featured Gallery Bentley wood finish Image Credit: Bentley Bentley Luxury bentley flying spur