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VW won't let emissions scandal keep it from racing

The Volkswagen Group may have its hands full dealing with the diesel emissions scandal. But that doesn't mean it will be curbing its considerable racing programs. At least not in any significant way. This according to Matthias Muller, who recently moved up from his previous position as Porsche CEO to preside over the entire group. Speaking with Autosport at the World Endurance Championship finale in Bahrain this past weekend, Muller emphasized the importance of racing to the company. "The motorsports programs are not in danger of being dropped or significantly reduced because motorsports is very important for the group and the brands," said Muller. "Basically we do not question our motorsport efforts." Of all the brands under the group's umbrella, several have prominent, top-level factory works racing programs, and others support customer racing teams. The Volkswagen brand has emerged as the dominant force in the World Rally Championship, securing both titles over the past three years. Both Porsche and Audi compete in the top tier at Le Mans and in the World Endurance Championship, trading places in the winner's circle. Audi also competes in DTM, and alongside Lamborghini, Bentley, and Porsche, and also offers GT3 and GTE racing cars to private customers. Lamborghini, Porsche, Audi, and Seat (once the leader in touring cars) all run their own spec racing series as well. Skoda continues to compete in lower-level rallying, leaving only Bugatti to draw on its prominent pre-war grand prix racing history. To hear Muller tell it, those racing programs – or at least the top-levels ones among them – aren't going away anytime soon. But there may still be some tweaks here and there, and we shouldn't expect any new programs to be launched in the near future. Porsche, for example, is anticipated to wind down its factory involvement in GT racing, after winning both the drivers' and manufacturers' titles in the WEC GTE Pro class this year in addition to its LMP1 victories. Instead it will focus on preparing new racing versions of the 911 for client racing teams. The auto giant was also reportedly close to branching out into Formula One in partnership with Red Bull. But after negotiations were interrupted by emergence of the diesel emissions scandal, that deal fell apart. It remains unknown which brand might have been represented in the F1 engine-supply program.

Porsche again staring down another $1.8B in hedge fund lawsuits

The sequence of events from 2007 that began with Porsche's secret attempt to take over Volkswagen, and instead lead to Porsche being taken over by VW, continues to instigate lawsuits against the Stuttgart sports car manufacturer. A group of hedge funds that suffered over $1 billion in losses sued the car company in New York. Porsche had publicly stated it wasn't trying to buy VW, the hedge funds in question were shorting VW stock, and when Porsche's actual intentions were revealed, the stock shot up and the hedge funds took a beating.
The case was thrown out over the issue of jurisdiction, then appealed, only to see another suit filed on top of that. After that, most of the hedge funds withdrew their claims in New York and Porsche offered a 90-day window to refile in Germany where it is already fighting a number of other suits over the same issue. The hedge funds accepted the offer, refiling in Stuttgart for $1.8 billion in damages. According to Bloomberg, Porsche hasn't commented on the refiling, but as the same plaintiffs are involved, it's safe to assume that the carmaker still feels the case is "unsubstantiated and without merit." It has fared alright so far even in German courts, with two lesser cases against it thrown out last year.

Audi investing $30.3 billion through 2018 for product expansion

How does Audi plan to reach two million units in annual sales and pay for the 11 new models it's adding to its lineup - an expansion that may include models named SQ2, Q9 and F-Tron? By increasing its investment to 22 billion euros ($30.3 billion US) between now and 2018. That figure represents an increase of about 500 million euros over the previously planned outlay, according to a report by Automotive News, and that could be due to Audi wishing to goad the momentum that pushed it to 1.5 million annual sales two years ahead of schedule.
It's also about staving off the challenges from BMW and Mercedes-Benz. Now that BMW has been able to turn some of its attention away from its "i" series of Megacity cars, it will reportedly spend more than planned in 2014 as it continues the rollout of ten all-new vehicles and 15 new-generation vehicles through the end of next year. Mercedes, having been dropped to third in the sales race, is preparing to add 13 new cars over the next six years.
Audi's money is going into technology, into product like the next-generation TT and the Q1 and production expansions and upgrades all over the world. The expenditure represents just under a fourth of Volkswagen's 84.2 billion-euro ($115.7 US) outlay devoted to taking the number-one global automaker title away from General Motors and Toyota by 2018.