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Porsche board members facing another ˆ1.8B lawsuit over VW takeover bid

Back in 2008, Porsche got the bright idea that it could take over Volkswagen in the midst of the worst economic slump since the Great Depression. Ignoring that this was a catastrophic move for the Stuttgart sports car manufacturer that that eventually resulted in it nearly going bankrupt and eventually being taken over by the same company it sought to control, the aftermath has left Porsche Chairman Wolfgang Porsche and board member Ferdinand Piëch in the crosshairs of seven hedge funds that lost out during the takeover and are now seeking €1.8 billion - $2.43 billion US - in damages from the two execs, according to the BBC.
See, investors bet on Volkswagen's share price going down, partially because Porsche said it wasn't going to attempt a takeover. But Porsche was attempting to take over VW, having bought up nearly 75-percent of VW's publicly traded shares. When word broke that Porsche owned nearly three-quarters of VW (which indicated an imminent takeover attempt), rather than go down like the hedge funds bet it would, VW's share price skyrocketed to over 1,000 euros per share, according to Reuters.
Naturally, when you bet that a company's share price is going to drop and it in turn (temporarily) becomes the world's most valuable company, you lose a lot of money, unless you're able to buy up shares before prices jump too much. This led to a squeeze on the stock, which the hedge funds accuse Porsche and Piëch (who are both members of the Porsche family and supervisory board) of organizing.

VW CEO Winterkorn issues video apology for diesel scandal

Amid rumors that he might step down from the automaker, Volkswagen CEO Martin Winterkorn has issued a video statement publicly apologizing for the company's diesel emissions scandal. The boss claims that he doesn't have the answers to all of the questions yet but promises a thorough investigation to makes things right. Multiple times in the speech, he asks forgiveness from customers all over the world and asks people not to blame all of the company's 600,000 employees for this lapse. At no point does Winterkorn mention resigning, though. You can watch the whole clip above, but it's in German, so turn on the subtitles. However, Winterkorn's future with VW isn't assured, and works council boss Bernd Osterloh appears ready to make some changes. "I can assure you that we will do everything possible in the supervisory board meetings this week to ensure the matter is cleared up quickly and that personnel consequences are drawn. And that will not just affect the rank and file, I can assure you," he said in a letter to Bild, according to Reuters. Earlier today, the automaker admitted that the same engine management software is in vehicles from other VW group brands, but it claims that the Type EA 189 engine is the only one with a deviation between test results and real-world numbers. That mill is installed in 11 million vehicles across the globe. As a start, VW is earmarking 6.5 billion euros ($7.3 billion at current rates) to service them. The actual costs could go much higher, though.

Piech and Winterkorn still at odds about VW leadership plan

Volkswagen Group Chairman Ferdinand Piech (above, right) and CEO Martin Winterkorn (above, left) will be meeting in the coming days to discuss who the next leader of the Volkswagen Group will be. This, of course, comes after a report last Friday in Der Spiegel where Piech said he didn't want Winterkorn to be the automaker's next chairman. Oh, to be a fly on the wall of that conference room. As Automotive News reports, Winterkorn had been widely viewed as the probable replacement for the 77-year-old Piech, until last week, when the current chairman said he was keeping the CEO "at a distance," in the German paper. While Winterkorn confirmed to German media on Monday that he still had a job, analysts aren't sure what Piech's comments will mean for the 67-year-old CEO's future, with some indicating he may end up being a "lame duck" leader. According to AN, Piech doesn't think that Winterkorn has the vision to lead the sprawling Volkswagen Group empire, even though the current CEO has the support of a number of other VAG stakeholders. "Piech knows what he is doing and will assume that he can get the supervisory board to implement his decisions," former BMW executive turned analyst Helmut Becker told German media, AN reports. Winterkorn has just over 18 months left on his contract, while Piech's term has another two years left on it, meaning it will still be some time before we find out how the Volkswagen Group's leadership issues play out.