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Piech's dismissal from VW came after failed coup to oust Winterkorn

When the Volkswagen board ousted its chairman Ferdinand Piech over the weekend, we knew right away it had something to do with disapproval of chief executive Martin Winterkorn. And now we have more details of how that struggle reportedly came to a head. According to Reuters, Piech undertook a cloak-and-dagger campaign to oust Winterkorn as CEO, even after having publicly endorsed the top executive's leadership of the company. Piech reportedly focused on other members of his family – descendants of Ferdinand Porsche and majority stakeholders in Volkswagen – to install Porsche chief Matthias Mueller as group CEO in Winterkorn's stead. But Piech failed in his campaign, and was given an ultimatum by the board: either show yourself out or we'll kick you out. And so he resigned. A big part of Winterkorn's rescue and Piech's failure reportedly came at the hands of labor representatives on the VW board, like Berthold Huber who was appointed as acting chairman following Piech's departure. That may leave Winterkorn still in charge, but may leave him beholden to the unions even more than before. Winterkorn has been undertaking a concerted campaign to cut overhead costs at VW, but the trade unions have reportedly been blocking many of the steps the chief exec has proposed. The next big question is who will ultimately replace Piech in the long term at the head of the board table. Winterkorn could get the nod, leaving the company to find a new CEO to take his place. Another likely scenario, however, would be another member of the Porsche/Piech family taking the helm and leaving Winterkorn in place. Whether Ferdinand Piech ultimately sells his 13.2 percent stake in the company (likely to other members of his family) or holds on to it and exerts influence behind the scenes is an open question. One way or another, any major appointment at the head of either the management or supervisory board will require support from the Porsche/Piech family, from the works council of labor representatives and from the state government of Lower Saxony, so the process of filling Piech's vacancy will likely prove anything but straightforward. News Source: ReutersImage Credit: Thomas Kienzle/APN Hirings/Firings/Layoffs Volkswagen martin winterkorn

If VW defaults on loans it may sell Bentley or Lamborghini

If something goes catastrophically wrong with Volkswagen Group's recent $21 billion loan, brands like Bentley or Lamborghini could hit the auction block. According to two insiders to Reuters, the beleaguered German automaker agrees with its creditors to sell assets if the company somehow can't pay back the debt in a year. One of these anonymous people claimed the company hasn't yet deliberated over what to sell. However, the sources were willing to speculate that the power engineering portion of Man could be among the first to go. "Volkswagen may also consider divesting luxury car brands Bentley and Lamborghini or motor bike brand Ducati, although these units don't really move the needle," an insider said to Reuters. VW Group negotiated with the banks earlier this week to get the massive loan. The cash is necessary as a buffer in case the automaker doesn't have enough money on hand to repair vehicles or settle upcoming fines. VW would reportedly issue bonds in the spring to begin paying the debt. The company's bills will start racking up quickly in the new year. German authorities mandate a recall there in early 2016, and repair campaigns in the US for the 2.0- and 3.0-liter diesel engines are inevitable. There are also hundreds of class-action lawsuits to settle. The company needs to resolve its CO2 emissions scandal in Europe, too. In response to these financial threats, VW management created a cost-cutting plan to slash the research and development budget by $1.1 billion next year.

Will Audi's e-tron SUV's range match the Tesla Model X?

Tesla may soon get some competition from across the Pond when it comes to battery-electric SUV supremacy. Volkswagen's Audi division is preparing an SUV sized between its Q5 and Q7. And the company is suggesting that the model's single-charge range may challenge that of the Model X. Audi's battery-electric SUV, which was first shown off in a concept version at the Frankfort Auto Show in 2015, may start sales as soon as next year. More importantly, the model could have a single-charge range of more than 300 miles, UK's Autocar says, citing an interview with Audi executive Dietmar Voggenreiter. Granted, that estimate is likely for Europe's more generous NEDC cycle, which would put the range at closer to 250 miles by US Environmental Protection Agency (EPA) standards. Still, 250 miles would beat the 200-mile range of the base-model Tesla Model X and would be in spitting distance of the 100D model's 295 miles. What that means for US customers - price, on-sale date, and range - is unclear. Audi spokesperson Amelia Fine-Morrison, in an e-mail to Autoblog, said it was "too soon to confirm the details," and that the automaker would disclose more information closer to the official launch date. Still, Audi has said it looks to have as much of 25 percent of its global offerings be electrified by 2025, so this will likely be a big step towards that goal. Then there's the question of how big the domestic market will be (not to mention how much the Audi SUV EV will cost). During the three months ended Dec. 31, 2016, Tesla delivered a quarterly-record 9,500 Model X vehicles, so there will obviously be high-end demand for an electric SUV from an established brand like Audi. Related Video: