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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.

2016 VW Passat starts at $23,260

With the recent reveal of the 2016 Volkswagen Passat, VW has shown a refusal to let the company's diesel-emissions scandal keep it from launching updated models in the US. When the sheet came off, the company told us that the refreshed sedan would start at $23,260, after the $820 destination charge on all versions. Now, we're getting the pricing details for the entire revised lineup. On all but the very top model, buyers get a 1.8 TSI turbo four-cylinder with 170 horsepower and 184 pound-feet of torque and six-speed automatic transmission. The base Passat S offers that combo for the same price as last year, but VW claims $1,315 in extra equipment is now included, like a five-inch MIB II infotainment system and automatic post-collision braking system. An optional LED lighting package runs $1,245 on the S, but prices differ on other levels. Pricing has not been released for the 2016 Passat TDI. That model needs a fix for its emissions cheating software before it can be certified by the EPA, and go on sale. Jumping to the Passat R-Line for $24,975 gets buyers black accents on the front bumper, 19-inch wheels and a tweaked rear diffuser. Another $775 adds the R-Line comfort package with a power driver's seat, heated front chairs, leatherette upholstery, and heat for the exterior mirrors and washer nozzles. Paying $27,100 for the Passat SE includes amenities like 17-inch wheels, a sunroof, 6.3-inch MIB II system, and adaptive cruise control. In addition, there's the SE with Technology for $29,230 with a blind-spot monitoring, push-button start, rear-traffic alert, navigation, rain-sensing wipers, and an auto-dimming rearview mirror. The next step up is the SEL for $31,315 with a plethora of extra luxuries. It gets 18-inch wheels, an upgraded Fender stereo, Vienna leather seats, power front chairs, and a rear pass-through. Sitting at the top of the range is the SEL Premium for $35,090. This trim has even more tech, including lane departure warning with active steering, active blind-spot monitor, front and rear park-distance control, and parking steering assistant. The LED lights are standard, as well. Plus, for $37,655 buyers can get the V6 SEL Premium with a 3.6-liter VR6. It makes 280 hp and 258 lb-ft and is linked to a six-speed DSG. Getting the bigger engine also adds dual trapezoidal chrome exhaust tips and Hill Hold Control.

Autoblog Podcast #327

New York Auto Show, Jim Farley interview, 2014 Chevrolet Silverado fuel economy, Ford fuel economy app challenge
Episode #327 of the Autoblog Podcast is here, and this week, Dan Roth, Zach Bowman and Jeff Ross talk about this year's New York Auto Show, Chevrolet's latest assault in the pickup truck fuel economy battle, and Ford's reward for developing a better fuel economy app. Dan also has an interview with Ford's Jim Farley about the future of Lincoln. We wrap with your questions and emails, and for those of you who hung with us live on our UStream channel, thanks for taking the time. Keep reading for our Q&A module for you to scroll through and follow along, too. Thanks for listening!
Autoblog Podcast #327: