1981 Porsche 924 on 2040-cars

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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.

2017 Porsche 911 Carrera First Drive [w/video]

The second seismic shift in the history of the Porsche 911 is happening as you read this. The first came in the late 1990s, when air cooling was thrown out and a more modern, water-cooled setup was put in place. People freaked out, and prices of air-cooled 911s are now skyrocketing. But I'll argue that this second major change is an even bigger deal: The free-breathing, naturally aspirated engine is gone, in its place a smaller, more powerful, turbocharged lump. But there's no need to panic. Purists be damned; "no replacement for displacement" shouters be silenced. This forced-induction heart beats beautifully in the 911's rump. I'm behind the wheel of a 2017 911 Carrera S coupe, stopped at the base of a winding mountain road on Tenerife, the largest of the Spanish-owned Canary Islands off the northwest coast of Africa. A nearly identical 911 is ahead of me, piloted by one of Porsche's test drivers. The road is closed. Hired spotters watch the corners. I'm about to run up the mountain at full charge, Porsche's expert leading the way. This forced-induction heart beats beautifully in the 911's rump. Behind me is the new engine: a 3.0-liter, twin-turbocharged flat-six. At idle, it still has that unmistakably Porsche, horizontally opposed hum. I've got 420 horsepower and 368 pound-feet of torque to work with, increases of 20 hp and 43 lb-ft compared to the old 3.8-liter, naturally aspirated six. If I launch it, I'll hit 60 miles per hour in under four seconds. Power is routed through the Porsche Doppelkupplung transmission – the best dual-clutch tranny in the business – and the fat, 305-section Pirelli PZero tires out back get all that thrust to the ground. There's a strong engine noise, complemented by the sound of the turbos sucking in air via the intakes just below the rear window. And then there's the exhaust. The standard Carrera comes with two large outlets and the Carrera S replaces those with quad pipes. But I've got the optional sport exhaust, not pictured on the car you see here, with two round outlets moved toward the center of the 911's hiney. Not only do they look way cooler, they're a treat for the ears. The Spanish may have decided to tunnel through many of Tenerife's mountainsides, but the pleasure of punching the throttle and letting the exhaust sing easily makes up for any loss of scenic views. The Carrera S' full 368 lb-ft is available right from 1,700 rpm, and there's no lag prior to arrival.

VW CEO lost his job over buggy software that delayed new models

It says a lot about the state of the auto industry and where it's going that software problems have cost the CEO of a carmaker his job. Volkswagen ousted Herbert Diess as chief executive officer after severe software-development delays set back the scheduled launch of new Porsches, Audis and Bentleys. This was untenable considering buggy software postponed the debut of VW’s initial rollout of ID models, and customers are still having to drop off their cars at the dealer for updates the company has struggled to make over the air. Sure, Diess also didnÂ’t do enough to make allies and became increasingly isolated due to his hard-nosed leadership style. In his push to transform the company into an electric-vehicle leader, he repeatedly clashed with labor leaders by warning VW was losing out to Tesla and needed to cut thousands of jobs. But failures at the carmakerÂ’s software unit Cariad ultimately eroded DiessÂ’s support from the powerful Porsche and Piech family that calls the shots. Back in December, VW overhauled its management board, stripping Diess of some responsibilities while tasking him to turn around Cariad. While thereÂ’s been a lot of re-arranging since then, Diess didnÂ’t manage to make the issues go away. Discord at Cariad has pushed back the rollout of important new models including the electric Porsche Macan, a high-volume sport utility vehicle for the division thatÂ’s planning an initial public offering in the fourth quarter. AudiÂ’s new line of Artemis EVs has been delayed by around two years to 2027. And VWÂ’s ultra-luxury brand Bentley may not be able to go all-electric by the end of this decade as planned because of the software issues, Automobilwoche reported earlier this month. “Taking over the ship at Cariad seems to have been DiessÂ’s downfall,” said Matthias Schmidt, an independent auto analyst based in Berlin. VWÂ’s solutions to challenges tend to reflect its status as an industrial behemoth: itÂ’s able to throw lots of money and people at its problems. But modernizing the company for the digital age is going to take bringing in talent and building skillsets outside its traditional zones of expertise. Drivers increasingly demand intuitive user interfaces and services that could create new revenue streams, if done correctly. “Software is the key to the future,” TeslaÂ’s Elon Musk tweeted when one of his followers asked about VW switching CEOs. Diess certainly didnÂ’t lack ambition.