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$1.4B hedge fund suit against Porsche dismissed

Investors have canvassed courts in Europe and the US to repeatedly sue Porsche over its failed attempt to take over Volkswagen in 2008 (see here, and here and here), and they have repeatedly failed to win any cases. You can add another big loss to the tally, with Bloomberg reporting that the Stuttgart Regional Court has dismissed a 1.4-billion euro ($1.95B US) lawsuit, the decision explained by the court's assertion that the investors would have lost on their short bets even if Porsche hadn't misled them.
Examining the hedge funds' motives for stock purchases and the bets that VW share prices would fall, judge Carola Wittig said that the funds didn't base their decisions on the key bits of "misinformation," and instead were participating simply in "highly speculative and naked short selling," only to get caught out.
With other cases still pending, the continued streak of victories bodes well for Porsche's courtroom fortunes, since judges will expect new information to consider overturning precedent. If there is any new info, it could come from the potential criminal cases still outstanding against former CEO Wendelin Wiedeking and CFO Holger Härter, who were both indicted on charges of market manipulation.

VW readying CC Shooting Brake?

This was bound to happen. Volkswagen's relentless drive for big volume has the brand mining seemingly every niche it can find for additional sales worldwide. And with its CLS Shooting Brake, fellow countryman Mercedes-Benz has already shown that a wagon based off of a "four-door coupe" can look dead sexy and command extra dollars. So it follows that the Volkswagen CC (whose existence is all but directly attributable to the success of the original CLS sedan) will also get a load-lugging variant. That's according to the UK's Autocar, which notes that the five-door will come in the CC's next generation.
According to the report, the next CC will be available in front and all-wheel drive variants with the usual assortment of gas and diesel four-cylinders found in the Wolfsburg empire, with the possibility of a gas plug-in hybrid model, too. The rakish estate will ride atop VW's MQB architecture, a shorter variant of which is also found underneath the new Golf. The scalable chassis is set to spread like kudzu throughout the company's lineup, but the CC probably won't happen until after the launch of the next European-market Passat in 2015.
Will we get it in North America? Hard to say. Volkswagen sells the standard CC saloon here, but not in particularly large numbers, and when the company moved to a North American-specific Passat, it dumped the wagon variant. The traditional VW estate apparently continues to pick up sales momentum abroad, however, making the CC Shooting Brake a seemingly natural fit for buyers who still want the utility of a two-box form but can afford to sacrifice a bit of cargo room in the name of style.

VW developed 4 separate defeat devices over 7 years

Today brings more bad news for Volkswagen as three anonymous insiders, speaking to Reuters, are claiming that the company modified its emissions defeat device to work on at least four engines over the seven years the company has admitted to cheating. If true, the incremental updates to the software cheat could be evidence of a larger group of employees making an ongoing effort to continue their deception without regulators' knowledge. So far, VW's emissions scandal has embroiled some 11 million vehicles using the EA189 and EA288 diesel engines. "VW would have had to reconfigure the software for each generation of engines," an unnamed official close to the US investigation said to Reuters. Recently, Volkswagen asserted that only a few individuals were involved in the cheat, and challenged a report that at least 30 managers knew about the situation. The report in Reuters, if true, would make VW's claims hard to believe. It might also mean even more legal trouble for VW. According to the report, the Justice Department could seek even harsher punishments if it finds out that more top execs knew more about the issue than VW is letting on. Investigators in Europe have also been working out who was involved in the deception. Italian authorities recently searched the Lamborghini headquarters and VW's main office in the country looking for evidence. Meanwhile, German prosecutors collected documents directly from the automaker's headquarters in Wolfsburg, and regulators there mandated a recall in early 2016. Related Video: