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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.

Mercedes may be working on a new electric car dubbed 'Ecoluxe'

Automobile has a lengthy piece this month on how the four German mass-market luxury manufacturers each plan to go after Tesla with their own electric vehicles. It was written by Georg Kacher, the magazine's European bureau chief, and the English version came a month after he wrote the German-language original for Autobild. Tesla isn't exactly a threat to the Germans, but, according to the report, the Model S is planting the right kinds of seeds in niches that are important to the luxury players. The thinking is that - in addition to needed electric vehicles anyway for stricter US regulations - it's better to start designing the machinery now. The article posited Porsche's attack would rest on the coming Panamera platform, but a big hurdle would be battery placement. Unable to find one large space for a lithium-ion pack, engineers would instead put batteries everywhere they could, for a supposed tally of some "108 battery pouches" throughout the body. A few days after the Automobile piece, however, Porsche publicly said it had no intention of challenging the Model S, because the enthusiastic driving the brand is known for doesn't jive with useful range. In Kacher's retelling, Mercedes' plans are even more ambitious, supposedly taking aim at the Model S and the coming Model X. It would do this with an investment in excess of $2 billion in a program called "Ecoluxe" – Mercedes has no brand division akin to BMW's i and Audi's e-tron. The new brand would create a four-strong family of bespoke electric vehicles: a smaller platform with a wheelbase around 106 inches and a larger one with a wheelbase around 118 inches. In addition, the range would have "provisions for rear-wheel drive, all-wheel drive, and rear-wheel steering." The numbers are impressive: seating for seven in the larger vehicles, both longer than 16 feet, front and rear storage areas, ratings of up to 610 horsepower and production capacity of 80,000 units per year. When would we see such creatures? Perhaps as soon as 2019. We do know that if Tesla can knock the Model X over the outfield fence, automakers are going to have to do something. We don't know what the chances are that Ecoluxe is Mercedes' first move - but such a plan could help explain the weird Mercedes concept spied in October.

Audi says 13% of A3 sales are E-Tron plug-in hybrids

Audi's most recent metric for plug-in sales of its A3 Sportback line brings up the classic "glass half full" or "glass half empty" conundrum. The German automaker says that almost 13 percent of its A3 sales during the past year have been of the E-Tron plug-in hybrid variety. That's a decent rate, and a notable one because Audi said late last year that it was hoping that as much as a quarter of its global sales will be plug-in vehicles by 2025. The 2017 model-year Audi A3 Sportback E-Tron has the same specs as the 2016 version, featuring a 1.4-liter engine paired with an electric motor that together deliver 204 horsepower and 258 lb-ft of torque. The 2016 version was rated by the Environmental Protection Agency (EPA) as having an 86 miles per gallon-equivalent rating, and was estimated to be able to go as far as 16 miles on electricity alone. Audi notes that the EPA hasn't yet rated the 2017 version, but we expect it to be the same. The plug-in hybrid can zip from 0 to 60 miles per hour in 7.6 seconds. As for that 13-percent figure, Audi didn't specify if that meant US or global sales. The company moved 19,622 A3s in the US through July. At 13 percent, Audi would've sold about 2,500 A3 plug-in hybrids. To put that in perspective, the Ford Fusion and C-Max Energi PHEVs have moved 8,576 and 8,155 units this year, respectively. Audi of America president Scott Keogh said on the eve of last year's Los Angeles Auto Show in November that he wanted 25 percent of Audi sales to be plug-ins by 2025. The following month, Audi said it was hitting that 25-percent threshold in Norway and the Netherlands, where citizens tend to be a bit more plug-in-centric than Americans. But it's a good start. Check out our First Drive impressions of the 2016 A3 E-Tron here. Related Video: Featured Gallery 2017 Audi A3 Sportback e-tron News Source: Audi Green Audi Hybrid PHEV e-tron audi e-tron sportback a3