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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.

The Bentley Bacalar went from a sketch to a 650-hp roadster in nine months

Bentley's Mulliner division cemented its status as a modern-day coachbuilder when it unveiled the Bacalar, a two-seater roadster loosely based on the Continental GT. Nearly every part that drivers will see and feel is specific to the model, including the body panels and most of the interior, yet the company created it in just nine months. Mulliner has worked on many one- and few-off models in the past, it notably turned the stately Mulsanne into a six-seater limousine in 2016, but the Bacalar (pictured) takes customization to an entirely new level. Repeated requests from its most loyal clients convinced Bentley to expand the scope of its coachbuilding division. "We felt a strong demand from our high-end customers. They asked again and again, 'can you do something very special?' They weren't talking about one of a hundred, but one of 10 or even one of one," explained Stefan Sielaff, the company's lead designer, in an interview with Autoblog. He added the Bacalar project started shortly after Bentley introduced the EXP 100 GT in 2019 to celebrate its 100th birthday. This explains some of the visual parallels between the two cars. While the concept was electric, the sold-out production model receives a mighty, 650-horsepower W12 engine because Bentley couldn't create a suitable battery-powered drivetrain in the short amount of time it had to make the roadster a reality. Sielaff stressed the effort his team put into making the Bacalar in nine months shouldn't be underestimated. "We had to make sure the car was road-legal, homologated, and certified. The car you would have seen at the Geneva auto show is literally what the customer will get. It's not a crazy show car. The only difference will be the colors and the materials, because we will work with each customer to make an individual statement," he said. In the United States, the Bacalar will be imported under the Show and Display law, like the McLaren Speedtail. The expedited design process meant the 12 future Bacalar owners signed the dotted line after seeing only digital renderings of the car. They weren't shown the final product until much later. Their enthusiasm is encouraging; it tells Sielaff there's a tremendous appetite for one- and few-off Bentley models among wealthy clients.

Volkswagen might cut 40 models across brands to save cash

Volkswagen once set out to pass Toyota and General Motors and become the largest automaker in the world. Following months of fallout from the diesel emissions scandal, the manufacturer is rumored to be dropping around 40 models from its company-wide lineup. According to German business and finance publication Handelsblatt, the Volkswagen Group is looking to slim down and remove a number of low-volume vehicles from various lineups. The company currently sells around 340 models across brands that include Audi, Lamborghini, and Bentley. Volkswagen is refusing to comment, but Handelsblatt claims to have sources within the company. Last week, Volkswagen Group CEO Matthias Muller announced a new strategy for the company that includes a major focus on electric vehicles and new technology services. During his announcement, Muller said the company would be cutting a number of models, but at the time no numbers, models, or brands were discussed. Despite comments to the contrary, rumors have persisted since late last year that Volkswagen was looking to sell commercial truck and bus manufacturer MAN. Volkswagen owns truck and bus manufacturer Scania, so even if it dropped MAN, the company would still have a foothold within the bus and truck market. There is also talk of the company selling Italian motorcycle manufacturer Ducati, which Volkswagen acquired via Audi in 2012. The company's image has taken a huge hit in the wake of the diesel scandal. Volkswagen has set aside cash in order to pay fines and may be looking to sell these several subsidiaries and cut low-volume models in order offset the costs. Despite the scandal, the company led worldwide sales in the first quarter of 2016. The same was true in 2015, but sales tanked at the end of the year following the diesel revelations. Related Video: Rumormill Audi Bentley Volkswagen Ducati