1973 Volkswagen Beetle - Classic on 2040-cars

Auto blog

German judge 'inclined to dismiss' hedge fund lawsuit against Porsche

Last year, around two dozen investors, including hedge funds, leveled a 1.4 billion euro ($1.95 billion at the time) lawsuit against Porsche in connection with the automaker's attempted takeover of Volkswagen in 2008. The Stuttgart Regional Court dismissed the case. Around 19 of those plaintiffs are heading back to court to appeal the ruling and still hope to get 1.2 billion euros ($1.4 billion). However, according to one German judge, the chances for success aren't any better this time around. "On balance it's our view that we consider the lawsuit, or the appeal, to be unpromising for several reasons," Gerhard Ruf, a judge in Stuttgart, said to Reuters. "We are inclined to dismiss the case." The court's ruling on the appeal will be announced on March 26. The investors' case hinges on Porsche's strategy surrounding the botched takeover. The sports car maker said that it wasn't trying to control VW, when in fact it was. These hedge funds had bet against Volkswagen stock, but the share price surged when Porsche's plan inevitably came to light. Investors have sued the sports car company multiple times since then in attempts to recoup billions of dollars. However, none of the lawsuits have been successful, whether attempted in the US or Germany. Former Porsche CEO Wendelin Wiedeking and and CFO Holger Haerter might still stand trial for the alleged stock manipulation, though. News Source: ReutersImage Credit: Matthias Rietschel / AP Photo Government/Legal Porsche Volkswagen lawsuit hedge funds porsche lawsuit

Porsche CEO Matthias Mueller throws hat back in ring for VW CEO job

Toward the end of February it got leaked that Porsche CEO Matthias Muller was being promoted to Volkswagen's supervisory board. Muller's credentials and his success over 36 years at the VW Group have, for observers, put his name in the pool of potential candidates to succeed current group CEO Martin Winterkorn when Winterkorn retires in two years. But the 61-year-old Muller told German newspaper Frankfurter Allgemeine Zeitung earlier in February, "It's no solution to put a 63-year-old at the head of Volkswagen," and the statement was taken to mean he wasn't considering the job. Muller now says the quote was misunderstood. In a report in Automotive News, the newly minted board member says he was commenting on what it would mean for the supervisory board and the Group if they nominated a 63-year-old to replace a 69-year-old - that it wouldn't result in a "generation change." However, if that's what they choose to do, Muller feels great: "I stand ready to take over any assignment," he said. Muller's name re-enters the candidacy pool, but we still have no idea who leads the running for the role and Winterkorn isn't saying a word. It could be three years before we know: Winterkorn's contract concludes at the end of next year but there is speculation he'll re-up for two years to see out the end of the Strategy 2018 initiative.

2016 VW diesels are still 'months' out

Many 2016 model year vehicles are already for sale at dealers in the US but none of them have Volkswagen's 2.0-liter TDI. Don't expect to see the diesels on lots for several months either. The Environmental Protection Agency is preparing an onslaught of evaluations on the engine to make sure that it doesn't get fooled again, Automotive News reports. Before the new tests can even begin, VW must resubmit the 2016 diesels to the EPA, and the company isn't saying when that might be. The automaker took back the models' previous application after telling the EPA about an undisclosed software feature, according to Automotive News. There was absolutely no evidence that this was another defeat device, but the emissions agency wanted more information about what the tech's effect was. EPA boss Christopher Grundler has been quite clear about not disclosing any details about the new tests. He doesn't want to give automakers a chance to create more defeat devices, and the agency intends to evaluate diesels from other companies with more rigor, too. That process is already beginning in cases like subjecting the 2016 Chevrolet Colorado Duramax to on-road emissions checks. Once the 2016 VW models are certified, the EPA intends to run the same tests on the proposed repairs for the company's earlier diesels. That process could take months, as well, according to Automotive News. VW CEO Matthias Muller recently said that the first recalls likely wouldn't happen until January.