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German prosecutors have recorded calls between VW bigwigs talking dieselgate

It's barely possible to believe how poorly Volkswagen continues to handle dieselgate. Depending on which day you catch the news, the German carmaker embodies the corporate venality of "Michael Clayton," the comic blundering of the Coen Brothers' "Burn After Reading," and the every-man-for-himself vengeance of "Reservoir Dogs." Today is Tarantino day, with news that German prosecutors have recordings of phone calls between former Audi and Porsche development boss Wolfgang Hatz, ex-Volkswagen Group executive Matthias Muller, and current Porsche executives Oliver Blume and Michael Steiner. Hatz made the calls to the trio in November 2015, two months after Volkswagen admitted its diesel-particulate sins to the U.S. Environmental Protection Agency. Hatz was still employed at the time, and in his company car. Who recorded the calls? His wife. Hatz and his missus apparently saw the storm coming and started stacking defenses early. Hatz's wife, who can be heard encouraging Hatz during at least one call, sent the recordings to Hatz's attorney from her mobile phone. According to a Google translation of the German newspaper Handelsblatt's report, she included the note, "Here is a very long, but quite informative conversation on the current situation with useful formulations." The report in Handelsblatt said that in Germany it is generally "not allowed" to record a conversation and pass it on to a third party. We don't know how the authorities will handle this matter, since prosecutors found the recordings in e-mail attachments on Mrs. Hatz's mobile phone. Remember, when the diesel scandal broke, VW spent months saying that only a small number of low-level personnel were behind it, and all of the higher-ups had been blindsided. Ex-CEO Martin Winterkorn claimed to be "stunned that misconduct on such a scale was possible in the Volkswagen Group." Winterkorn successor Matthias Muller said, "according to current information, a few developers interfered in the engine management." Former VW USA honcho Michael Horn told a congressional committee that "a couple of software engineers" programmed the software for reasons no one could understand. In the recorded conversations, Hatz apparently called Muller to find out how VW planned to treat him.

Audi kills off its 420-hp four-cylinder engine project

Audi's supercar-slapping, fire-breathing four-cylinder concept engine will remain just that, with Autoblog confirming that it has been internally killed off. Speaking at the launch of the TT RS, the engineering boss of Audi's Quattro GmbH division, Stephan Reil, said the Volkswagen Group had stopped all development of the 420-horsepower, 2.0-liter four it showed in the 2014 TT Quattro Sport Concept car (above). Despite previous assurances that Quattro had roles for both the EA888-based engine and Audi's wildly charismatic 2.5-liter, five-cylinder motor, post-Dieselgate reality has killed the smaller engine. "The 400-horsepower EA888 engine is dead," Reil said. The EA888 engine was conceived and developed by the same man behind AMG's powerhouse 2.0-liter four. Friedrich Eichler left AMG to become the Volkswagen Group's gasoline engine development go-to guy, and he was confident the 420-hp engine could be turned into a production car quickly, as was then-Audi development boss, Ulrich Hackenberg. It was even suggested that because the EA888 engine family bolted straight into the Volkswagen Group's ubiquitous MQB small-car architecture, the little powerhouse could be cheaply and quickly dropped into any of the company's cars that needed an image boost. Since then, Quattro has elevated the five-cylinder motor, switching it to an all-alloy block with a magnesium oil pan to cut down its weight while boosting its power and torque levels. Where the four-cylinder engine was shown with 420 hp and 332 lb-ft of torque, the production version of the TT RS's new five-cylinder engine totes 400 hp and 354 pound-feet of torque. The smaller engine's proponents claimed a 0-62 mph acceleration figure of just 3.7 seconds for the concept TT that carried it, and it might not be a coincidence that the all-new TT RS claims exactly the same figure. The 2.0-liter motor had a torque peak that arrived at 2,400 rpm and began to taper off at 6,300 rpm, while its power apexed at 6,700 rpm, thanks in part to a turbocharger that could feed it up to 1.8 bar of air. Flip to the TT RS' data and you're looking at more torque at lower revs and a touch less power, but at higher revs. That's not a lot of wriggle room for the concept engine to operate, especially when the perceived value of the five-cylinder engine is higher than the four, and the four's development and production costs would be higher than the five's.

Audi spotted running R8 E-Tron at the 'Ring

An electric version of the original Audi R8 may never have come to fruition – at least not in a form you could actually buy. But with the introduction of the all-new, second-generation model, Audi is getting serious about the prospect of producing the R8 E-Tron. And if you don't believe it, just look at these latest spy shots. Spotted testing at no less punishing a location than the Nurburgring is the upcoming new 2016 Audi R8 E-Tron. It looks just like the one we saw in Geneva earlier this year, painted in that same shade of electric blue, which we think suits the car rather well. It even has that orange strip of lighting around the side intakes, which drives the point of its electrification home in a rather stylish way, too. This prototype is wearing different wheels, and looks like it has some testing equipment mounted inside. Otherwise, this is pretty much what we can expect to see when Audi begins selling its electric supercar. We're sure there are more than a few eagerly awaiting customers who want to get their hands on an EV different from the Teslas or Nissan Leafs every other tree-hugger in the neighborhood has plugged in to their garages. To that end, expect the order books to open sometime later this year or maybe early into the next. Then the dream of an electric coupe with 456 horsepower and 679 pound-feet of torque, good for a 0-60 time in the three-second range and capable of tackling the Nordschleife, will finally become a reality. In the meantime, you can check out a piece of the action in the image gallery above. Related Video: Featured Gallery 2016 Audi R8 E-Tron: Spy Shots View 9 Photos Image Credit: CarPix Green Spy Photos Audi Coupe Electric Performance