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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.

Trump reportedly says he wants to wipe German cars off the U.S. map

BERLIN/FRANKFURT — A report that U.S. President Donald Trump has threatened to pursue German carmakers until there are no Mercedes-Benz rolling down New York's Fifth Avenue dented shares in the luxury car manufacturers on Thursday. An excerpt from German magazine Wirtschaftswoche's article, which cited several unnamed European and U.S. diplomats but did not include any direct quotes, could not be independently verified, while a U.S. Embassy spokesman in Berlin referred questions to Washington. The news and current affairs magazine said Trump had told French President Emmanuel Macron in April that he aimed to push German carmakers out of the United States altogether. Macron's administration in Paris declined to comment on the report. The Trump administration last week opened a so-called Section 232 trade investigation into vehicle imports, which could result in a 25 percent tariff on cars on the same "national security" grounds Washington used to impose metals duties in March. This could destroy exports by German carmakers, which control 90 percent of the U.S. premium market and are the biggest European Union exporters of cars to the United States. BMW owns Rolls-Royce, while Daimler has Mercedes-Benz, and Volkswagen controls Bentley, Bugatti, Porsche and Audi. Daimler, BMW and Audi declined comment. Porsche was not immediately available for comment. BMW shares were trading 0.5 percent lower at 0939 GMT, while Daimler and VW's shares were down 1 percent and 1.6 percent respectively, underperforming Germany's blue-chip DAX. Trump has railed against German carmakers before. And in early 2017, in an interview with German newspaper Bild, he said he would impose 35 percent tariffs on imported cars. At the time, the president called Germany a great car producer but said that the business relationship with the United States was an unfair one-way street. Germany's auto industry association VDA says its members exported 657,000 vehicles to North America last year, with total exports of vehicle components, cars, engines, as well as second-hand vehicles totaling 31.2 billion euros in 2016. Imports from the United States to Germany amounted to 7.4 billion euros, meaning a trade deficit of 23.8 billion euros the VDA's latest available figures show. However, German brands also have huge factories in the United States, where they built 804,000 cars last year, VDA said, providing jobs for U.S. workers. Berlin has reacted angrily to the U.S.

Porsche calling in two Cayennes

We regularly see recalls addressing all manner of problems (or potential problems) affecting any number of vehicles: hundreds, thousands, even millions. Some are too small to bother reporting, but once in a while one comes along that's so ridiculously small that we couldn't pass it over. Like this latest one from Porsche. "Due to a manufacturing error," says the National Highway Traffic Safety Administration in the notice below, "the suspension alignment on the front and rear axles may not have been performed correctly and the screw connections of the camber, toe and caster may not have been tightened with the specified torque." The recall affects the 2015 Cayenne... but just how many of them, you ask? Two. Not two hundred, not two thousand, but two: one Cayenne Diesel and one Cayenne S, manufactured between November 26 and... November 27, 2014. That very well might make this the most methodically German recall in the history of recalls. If you happen to be the owner of one of those two vehicles, expect to hear from Porsche with instructions to bring your Cayenne in to have the suspension re-aligned and the screws tightened. RECALL Subject : Front and Rear Alignment may be Incorrect Report Receipt Date: DEC 29, 2014 NHTSA Campaign Number: 14V824000 Component(s): SUSPENSION Potential Number of Units Affected: 2 Manufacturer: Porsche Cars North America, Inc. SUMMARY: Porsche Cars North America, Inc. (Porsche) is recalling certain model year 2015 Cayenne Diesel and Cayenne S vehicles manufactured November 26, 2014, to November 27, 2014. Due to a manufacturing error, the suspension alignment on the front and rear axles may not have been performed correctly and the screw connections of the camber, toe and caster may not have been tightened with the specified torque. CONSEQUENCE: If the suspension alignment was incorrectly performed, vehicle handling could be reduced, increasing the risk of a crash. REMEDY: Porsche will notify owners, and dealers will perform a front and rear suspension alignment, and check the screw connections for the proper torque, retightening as necessary, free of charge. The manufacturer has not yet provided a notification date. Owners may contact Porsche customer service at 1-800-767-7243. Porsche's number for this recall is AF04. NOTES: Owners may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153), or go to www.safercar.gov.