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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's Quattro division is now Audi Sport, and it has 8 new models on the way

Audi announced today that its Quattro GmbH performance and technology division will officially be renamed Audi Sport GmbH. The name change is the first since the division's introduction in 1983, and it should more clearly describe its function within the company and remove confusion with the Quattro all-wheel-drive system offered on all Audis, sporty or not. With its new name, Audi Sport will continue to handle the brand's RS models, the R8, customer race cars, customized road cars, and Audi Sport lifestyle products. While the clearer new name is good news, we're more interested in the division's announcement that it will release eight new cars in the next 18 months. The company didn't reveal exactly which cars these will be, but it did clarify which cars Audi Sport is currently responsible for. These include all variants of the RS 3, RS Q3 crossover, RS 6, RS 7, TT RS, R8, and S8 plus. Since the A4/S4 and A5/S5 models were just redone, we can guess that they will be next on the list for RS-ification, resulting in new RS 4 and RS 5 models. If that includes Sportback, coupe, and cabrio versions of the RS 5, and an RS 4 sedan and Avant, that would put us up to five already. Both the A6 and A7 have only seen a minor refresh recently, so it's likely that we'll see new versions of each soon followed by their own RS variants. However, whether those fit in the 18-month window will depend on how soon we see the standard models. Our other guesses are a bit fuzzier, and based completely on speculation. We could imagine one or two ultra-high-performance R8 models being announced – something like the last-gen R8 GT, perhaps offered in coupe and spyder forms – as well as RS versions of the other members in Audi's crossover fleet, the Q5 and Q7. It's also possible one of the models could be a new customer race car, since Audi Sport currently builds and sells the R8 LMS race car. At the very least, we know the Audi Sport folks are busy and people will no longer get them confused with an all-wheel-drive system. Related Video:

Former Ferrari F1 chief could be new Lamborghini CEO

The word on the street in Bologna is that Lamborghini is in for a changing of the guard. Current CEO Stephan Winkelmann is tipped to step down after 14 years at the helm in Sant'Agata, likely to move to another role at Audi. And in his place, the German automaker is anticipated to appoint Stefano Domenicali. Domenicali was formerly the head of Scuderia Ferrari, rising through the ranks at Maranello to succeed Jean Todt as team principal in 2008. He resigned in 2014 to be replaced first by Ferrari US chief Marco Mattiacci and then by Marlboro man Maurizio Arrivabene as the team has struggled to find its form again. Shortly after leaving Maranello, Domenicali took up a new position at Audi, where he was rumored to be working on the company's anticipated foray into Formula One with Red Bull. But after that program was shut down in the wake of the diesel emissions scandal, Domenicali is now tipped to move back to Italy to take over the supercar business. Stefano would be the second Domenicali to head an Italian performance brand under the VW/Audi umbrella, joining Ducati CEO Claudio Domenicali (they not believed to be related). The move would also be a particularly emphatic gesture to Sergio Marchionne. The Fiat Chrysler Automobiles chief has previously lost top lieutenants to Volkswagen, most notably Luca de Meo, who headed up VW brand's passenger car marketing department before taking over at Seat. While previous Ferrari chiefs Todt and Montezemolo came up through the racing department, Marchionne assumed the chairmanship in Maranello and brought in outside talent instead. Meanwhile Winkelmann has been in charge of Lamborghini since 2005, when he was appointed by Audi to run the company it had just acquired a few years prior. Under the tenure of the German-Italian executive, Lamborghini sales have risen from 1,600 units per year to over 2,500 last year. The introduction of the forthcoming Urus crossover, birthed under Winkelmann's leadership, is expected to more than double that overall figure. Given his success in transforming Lamborghini, it isn't likely that the Volkswagen Group will simply show Winkelmann the door. Word has it that he'll receive another posting at Audi, potentially taking over the growing Quattro GmbH division in Neckarsulm. The division is responsible for all of Audi's RS models as well as the R8 – the latter of which Audi sells as many units as the entire Lamborghini division does in a year.