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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 boss can't say no to F1 program

Audi has been a dominant force at the top rung of endurance racing for over a decade. Still, rumors have fired up again about the possibility of the company making a big switch to Formula 1. The Four Rings' boss Rupert Stadler isn't ready to make that decision yet, but he's not ruling it out. When asked by Auto Express about the potential of Audi entering F1 in the next five years, Stadler gave an intriguing answer. "It's something we're looking at, but then we're always looking at it and many other things. But I can't say yes or no," he said. While not at all a confirmation, that's hardly an outright denial, either. According to unnamed insiders speaking to Auto Express, Audi is under pressure from Volkswagen Group to leave the FIA World Endurance Championship. Right now, the Four Rings is competing directly against its corporate sibling Porsche. While that might make for a good rivalry on the track, it doesn't necessarily make sense financially. Rumors last year suggested that Audi might leave the WEC and DTM to finance the F1 project. Two possibilities were proposed at the time: act as engine supplier to Red Bull or buy Toro Rosso to run a whole new team. Stadler's non-denial might also indicate that Audi's view on F1 is shifting. In the past, the company's opinion has been much more obvious. Last year, Audi Sport tweeted that the rumormongering was "pure speculation." As far back as 2011, the brand's motorsport boss said grand prix racing had "no relevance to the road." Related Video:

Audi R8 lines up as safety car for Rolex 24 at Daytona

This weekend a new era begins in American sports car racing with the Rolex 24 at Daytona to kick off the new United SportsCar Championship, the freshly inked union between the Grand Am and American Le Mans Series. There'll be a wide variety of machinery lining up on the grid at the Florida speedway, including race-ready versions of the sports cars you can drive on the road, plus Daytona Prototypes, Le Mans Prototypes and even the DeltaWing. But at the front of the pack will be the Audi R8 5.2 FSI.
That's because Ingolstadt's flagship has been named as the official safety car for this, the 52nd annual Rolex 24 at Daytona. And so the R8 becomes the first pace car pressed into service for the United SportsCar Championship, although the model also paced last year's race (pictured above) when it was under the auspices of the Grand Am series.
The car in question appears to bear little in the way of modifications over the showroom version, save for some requisite graphics and maybe some emergency lighting to make it more visible - because while you wouldn't miss an R8 slicing its way through ordinary traffic on the road, it's another story entirely in a field full of competition machinery. Audi points out that the road-going R8 shares a good 50 percent of its components with the R8 LMS competing in the race, including its 5.2-liter V10 engine that's available this year with a new seven-speed dual-clutch transmission.