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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 A5 and S5 Sportbacks look slinky for the Paris Motor Show

Following closely on the heels of the updated Audi A5 and S5 refresh, the German automaker introduced the 2017 Audi A5 and S5 Sportback. The vehicles are set for an official debut at the Paris Motor Show next month and share many of the same exterior touches as the regular coupes. Audi's sportback models are not sold in the US. A spokesman from Audi told Autoblog that the automaker is still deciding whether to bring the vehicles to the US. The A5 and S5 Sportback are aimed at drivers that want the same feel as the coupe with the added functionality of a hatchback – think wagon meets sedan. Besides the extra set of doors, there's very little that differentiates the sportback models from the coupes. The new models are built upon Volkswagen's MLB platform, which makes the car roughly 190 pounds lighter than the outgoing model. European customers will be able to choose between two TFSI and three TDI engines for the A5 Sportback. The engines range from a 2.0-liter inline-four that makes 190 horsepower to a 3.0-liter turbocharged diesel V6 putting out 286 hp. The engines can be paired to a six-speed manual transmission, seven-speed S tronic dual-clutch gearbox or an eight-speed tiptronic unit. Front-wheel drive is standard, with all-wheel drive as an available option on two variants. AWD comes standard when opting for the more powerful engines. The vehicles will also feature Audi's new Quattro Ultra all-wheel-drive system that can disconnect the rear wheels to be more fuel efficient. The S5 Sportback is the one enthusiasts will enjoy as it packs a turbocharged 3.0-liter V6 that's good for 354 hp and 369 pound-feet of torque. Audi claims the S5 Sportback, even with the addition of its new doors, will be able to get to 62 mph in 4.7 seconds, which is the same time as its two-door counterpart. In addition to the diesel and gasoline-powered vehicles, the A5 Sportback g-tron will be offered for drivers looking for flexible fuel choices. The g-tron model is powered by a 170-horsepower, 2.0-liter turbocharged-inline-four that can run on Audi e-gas, natural gas or regular gasoline. The exterior design is nearly identical to that of the coupes with Audi's new single frame grille and muscular front end. The rear incorporates a fastback-like design, similar to the one found on the A7, which helps soften the vehicle out – all sport in the front and luxury in the rear.

Dieselgate defeats Audi's Le Mans racing dynasty

Referring to what the automotive press has dubbed "Dieselgate", Audi's Chairman of the Board of Management Rupert Stadler announced that Audi is pulling out of the FIA World Endurance Championship by the end of the 2016 season. This means Audi will no longer compete in the 24 Hours of Le Mans. However, that doesn't mean Audi is through with competing on the world stage. Instead of fossil-fuel-powered prototype racing, Audi will now "focus on the things that will keep (it) competitive in the years ahead", namely Formula E. Having worked together previously with Audi tuner ABT and component manufacturer Schaeffler in Formula E, the company is now turning Team ABT Schaeffler Audi Sport into a fully factory-backed outfit. Audi's DTM efforts with the RS 5 DTM will remain untouched for the time being, and the company hasn't made a decision yet as to whether its World Rallycross Championship with the Audi S1 EKS RX quattro will continue. Audi has competed in Le Mans prototype racing for 18 years, during which it secured 13 Le Mans wins. Out of 185 races contested by Audi's LMP cars, they racked up an impressive 106 wins. Audi's victory in 2006 was the first with a TDI engine, and the first hybrid-engine win was claimed in 2012. From 2000 to 2008, Audi won nine consecutive American Le Mans Series titles. Related Video: News Source: AudiImage Credit: REUTERS/Regis Duvignau Green Motorsports Audi Green Automakers Diesel Vehicles Electric Racing Vehicles Formula E abt audi le mans schaeffler