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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.

Volkswagen Motorsport cranks out Golf touring car

Just when you thought Volkswagen had done all the hot Golfs we could handle, its motorsports division has come out with an even hotter one. This racing version is built to compete in the Touringcar Racer International Series (TCR) across Europe and Asia, and certainly looks the part. Based on the production Golf hatchback we all know, the TCR competition version promises to be to circuit-based touring car racing what the Polo R WRC is to the rally stage. And that little pocket rocket has been positively dominating the World Rally Championship. Developed in conjunction with Seat's racing department and Liqui Moly Team Engstler, the Golf touring car packs the 2.0-liter turbo four from the Golf R. Only instead of 292 horsepower and 280 pound-feet of torque in the production version, it's been tuned to channel 330 hp and 302 lb-ft to the front wheels (instead of all four) through a six-speed dual-clutch transmission. It rides on 18-inch alloys fitted to a track widened by nearly a foot and a half, along with a competition-spec aero kit to keep it glued to the tarmac and a stripped-out cockpit. Though the 2015 TCR series is already under way, a pair of these racing Golfs will be entered in the upcoming round at the Red Bull Ring in Austria, before the series heads off to Singapore (in support of the F1 grand prix there) and Thailand ahead of the final round in Macau. If everything goes well, customer teams will be able to pick these up and enter them in next year's championship. Volkswagen develops new Golf for the racetrack - Concept car for customer racing, in line with new TCR regulations - Production-based touring car with 330 hp, front-wheel drive and six-speed DSG gearbox - First competitive test this weekend in Spielberg (A) Wolfsburg (09 July 2015). A new Golf for the racetrack: Volkswagen Motorsport is developing its first racing car based on the seventh generation Golf. The production-based, 330-hp concept car is assembled in accordance with TCR regulations and is intended to help Volkswagen evaluate a potential customer racing programme from the 2016 season onwards. In order to accelerate the development of the car, the new Golf will be tested under competitive conditions between now and the end of the season: as cooperation partner, the Liqui Moly Team Engstler will run two cars at the eighth round of the Touringcar Racer International Series (TCR) at the Red Bull Ring in Spielberg (A).

Volkswagen CEO Martin Winterkorn resigns amid diesel scandal

Volkswagen CEO Martin Winterkorn is stepping down amid charges the company manipulated its diesel-powered cars to meet emissions regulations around the world, the automaker announced Wednesday. No successor was immediately announced, though recommendations will be made at VW's board meeting Friday. Winterkorn, 68, has led VW since 2007 and oversaw the German automaker's staggering growth around the world. His departure comes less than a week after the EPA alleged the company has been cheating on diesel emissions testing for years, and that its cars might emit 40 times more pollution than legally allowed. The EPA says about 482,000 vehicles are affected in the United States, and VW estimates at least 11 million vehicles globally might have the software that allows the vehicles to cheat emissions regulations. "As CEO I accept responsibility for the irregularities that have been found in diesel engines and have therefore requested the Supervisory Board to agree on terminating my function as CEO of the Volkswagen Group," Winterkorn said in a statement. "I am doing this in the interests of the company even though I am not aware of any wrongdoing on my part. "Volkswagen needs a fresh start – also in terms of personnel. I am clearing the way for this fresh start with my resignation." Winterkorn stepped down after an executive committee meeting of the VW Supervisory Board Wednesday. The committee agreed Winterkorn had no knowledge of wrongdoing. "The executive committee has tremendous respect for his willingness to nevertheless assume responsibility and, in so doing, to send a strong signal both internally and externally," VW said in a statement. Volkswagen is conducting an internal review and expects more "personnel consequences" in the coming days. It also will voluntarily submit a complaint to the state prosecutor's office in Brunswick, Germany, and cooperate with the expected criminal investigation. Winterkorn's departure is the latest development in VW's burgeoning diesel emissions scandal. It came to light last week after the work of researchers at West Virginia University detailed the software manipulation designed to skirt EPA tests, and it has resounded as governments around the world examine Volkswagen's diesel vehicles. The company set aside $7.3 billion to deal with the fallout and has retained the law firm that defended BP during its oil spill.