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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 sees room for TT family, including possible crossover and superlight models

With the third-generation Audi TT slated for a debut at the 2014 Geneva Motor Show in just a few weeks time, we've received some interesting news out of the United Kingdom. Speaking to the crew at Top Gear, Chief Engineer Ulrich Hackenberg made some interesting statements about the next TT, noting that he likes the idea of a production Allroad Shooting Brake.
"I can imagine the TT has much more potential than we have used up to now. That's why we did this Allroad [Shooting Brake] Concept. The trend is to smaller crossovers. So for example you do a crossover TT. It would have a big group of fans," Hackenberg told TG.
That makes it almost sound like Audi is trying to expand one popular, fashion-forward model into a wildly different niche, like Mini did moving from Hardtop to Countryman (or perhaps more appropriately, the Paceman). We'll reserve judgement, if only because the Allroad Shooting Brake was one of the more popular concepts at the Detroit Auto Show, making our Editors' Choice list.

Audi SQ7 could come to US with TDI power

When Audi released the new SQ7 TDI, we couldn't help but wonder whether it would ever see an American road or showroom. And the answer is: maybe. When reached for comment on the prospect of the new diesel performance ute making its way to North America, Audi USA spokesman Mark Dahncke told Autoblog that "the SQ7 is not officially signed off on for the US, but we are optimistic." Those are encouraging words, even if they stop short of official confirmation. For those who missed the announcement in the wake of the Geneva Motor Show last week, the new Audi SQ7 TDI is a technological tour de force. It packs a 4.0-liter V8 diesel engine, augmented by two turbochargers and an electric compressor to produce 435 horsepower and 664 pound-feet of torque. It debuts a new 48-volt electrical system that powers one of the compressor and the electromechanical adaptive suspension. And just for good measure, it also features an eight-speed automatic transmission, a four-wheel steering system and all-wheel drive. The vehicle represents the first time Ingolstadt has applied the S performance badge to its largest model, and though initially announced for Europe, Dahncke's optimism leaves us hopeful in turn that it could steam its own way to American shores. If that optimism proves justified, the next big question is whether it will stick with the diesel engine or switch to a similarly powerful engine burning gasoline to more closely match American preferences – much as it did in bringing the smaller SQ5 to the US. But Dahncke tells us they "expect it to be a TDI if it does come." The decision to market a powerful diesel SUV in America would be a bold move on Audi's behalf, particularly in the wake of the diesel emissions scandal. The debacle is still fresh on the public's mind, having rocked the entire Volkswagen Group of which Audi is part – and historically a major proponent of diesel propulsion. If approved for the US market as proposed, the SQ7 TDI would far outshine the diesel versions of the Mercedes GL-Class, Porsche Cayenne, BMW X5, and Range Rover currently available – not to mention the 3.0-liter V6 TDI with 240 hp and 428 lb-ft of torque in many of Audi's models (which are, at the time of this writing, affected by a stop-sale in the US). Related Video: Featured Gallery Audi SQ7 TDI View 27 Photos Image Credit: Audi Green Audi Crossover SUV Diesel Vehicles Luxury Performance audi sq7