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Winterkorn remains CEO of Volkswagen's majority shareholder

Martin Winterkorn may have stepped down as the chief executive of Volkswagen in the wake of the diesel emissions scandal, but he's not out from under the company's large umbrella just yet. In fact, according to a report from Reuters, he still holds four top-level positions not only within the industrial giant's bureaucracy, but at the top of it. And one of those is as CEO of the company's largest shareholder. That holding company is Porsche SE, the investment arm of the Piech and Porsche families (Ferdinand Porsche's descendants) which holds over 50 percent of VW's shares. In 2008, Porsche SE acquired majority interest in the Volkswagen Group which in turn acquired Porsche the automaker – and placed VW's Winterkorn at the head of the executive board of the holding company. Though Winterkorn has resigned from his position as chairman of VW's management board, he has apparently yet to step down from running Porsche SE. That's not the only job that Winterkorn still retains in VW's senior management. He also continues to serve as chairman of Audi, as well as truck manufacturer Scania, and the new Truck & Bus GmbH into which Scania has been grouped together with Man. It remains unclear if or when Winterkorn might resign from those positions as well, or how his tenure in those posts might affect the company's effort to start over in the aftermath of the scandal in which it is currently embroiled. Also unclear, Reuters reports, is how much, exactly, Winterkorn will receive in compensation after having stepped down from his chair at the head of the VW executive board. His pension is reported at over $30 million, but he could be awarded a large severance package as well amounting to as much as two years' worth of his annual compensation, which amounted to around $18 million last year. Whether he receives the severance pay or not is expected to depend on whether his resignation is considered by the supervisory board to have been the result of his own missteps or independent of the situation that resulted in his resignation. One way or another, he's not likely to go poor anytime soon.

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

Audi prepping a flex-fuel A3 for Latin America

Volkswagen's Audi division hasn't fared well from its parent company's diesel-emissions scandal, especially in the US and Europe. In South America, though, Audi is set to unveil its first vehicle of the flex-fuel variety, according to Nseavoice. Perhaps the German automaker can earn some good karma down in the Southern Hemisphere. The model is the 2016 Audi A3, which is made in Audi's Brazil factory. The engine is a 1.4-liter variety, and it will be able to run on either conventional gasoline or ethanol, or a blend of both. The decision makes sense because ethanol is plentiful in Brazil since the government has long pushed for it and there's plenty of sugar-cane feedstock to produce the stuff. Audi can use all of the positive news it can get, especially in the wake of VW's diesel-emissions scandal. As many as 11 million VW and Audi diesels may have been fitted with software that cheats emissions-testing systems. One result from the scandal's proverbial shrapnel is that the Audi A3 TDI diesel was stripped of its 2010 Green Car of the Year Award by Green Car Journal. The decision marks the first time in the award's history that a winner was stripped of the honor. VW has a long history offering flex-fuel vehicles in Brazil. In 2003, the German automaker was the first to debut a flex-fuel engine, and within two years, VW's Brazil factories were making 300,000 flex-fuel vehicles annually. Other companies have since jumped into Brazil's flex-fuel fray, including Nissan and Honda.