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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.

Automakers paying Chinese dealers for lower-than-expected sales

The Chinese dealers vs. foreign manufacturers story won't quit. It began with a story on the struggles faced by FAW-Toyota joint venture dealers, with supposedly 95 percent of the showrooms losing money, and 10 percent of them doing so poorly that they'd have to exit the business. The problem is mandated sales targets, most set when the country's economy was racing. Now that things have slowed, China's dealers are swimming in unsold cars and the costs to keep them. In the case of FAW-Toyota, dealers asked Toyota to hand over 2.2 billion yuan ($355 million) to help address the situation. That was followed by a report noting the issues that Honda, BMW, and Nissan dealers are having with the same issue, revealing that the Chinese Automobile Dealers Association (CADA) had taken the highly unusual step of writing to the Chinese government to complain. Now Reuters reports that CADA is not only pressing its case even harder, it's being open about it: it announced that BMW agreed to pay dealers 5.1 billion yuan ($820 million) to alleviate poor profits last year. Unnamed sources said Audi has thrown 2 billion yuan into the kitty for subsidies, and Daimler has contributed "about 1 billion yuan" to its dealers. The battle isn't just about 2014, but how business will be run in 2015 as well: Chinese Porsche dealers have requested the automaker lower its 2015 target of 64,000 cars, which would be a 40-percent increase on its 2014 sales of 46,931 vehicles. One analyst called it "shocking" that the CADA has taken its fight public, while CADA comments continue to imply that dealers have been railroaded to the cliff's edge without recourse. "Due to the difference in status," it's deputy secretary said, "individual dealers are not willing to, or don't dare to, talk frankly with the carmakers...." Both parties need one another, so they'll figure out a way to make it work – but that could mean acknowledging the Chinese market is behaving more like a mature one, not an emerging one. News Source: ReutersImage Credit: Lintao Zhang/Getty Images Earnings/Financials Audi BMW Porsche Toyota Car Dealers Luxury

Porsche 911 GT3 Cup ANDIAL Edition First Drive

There is only one Porsche 911 GT3 Cup ANDIAL Edition on the planet, and its owner is standing patiently in the hot pits at Oklahoma's Hallett Motor Racing Circuit, watching attentively as his prized possession circles the challenging road course at speed. I'm the lucky soul strapped firmly in the cockpit of the white-and-blue racecar. The tight carbon-fiber seat is cutting into my hips, the racket from the gearbox is making me deaf and a river of sweat is flowing off the tip my nose – blame the high ambient temperatures combined with the stress of driving someone else's expensive machine on an utterly unfamiliar circuit. But don't expect me to complain, gripe or come into the pits early, as I'm having the time of my life – I've eagerly waited nearly half-a-year for this moment, and short of me blacking out, there's no way I'm cutting it short. It's been said that ANDIAL-prepared cars and engines have claimed victories on every major racetrack in this country. Belting into the driver's seat of an ANDIAL-prepared Porsche fulfills a personal dream that started decades earlier when I thumbtacked a picture of a white Porsche 935 on my dorm room wall, its colorful bodywork stenciled with "ANDIAL" along the bottom of the driver's door. In the 1980s, the name of the privately held racing company was synonymous with Porsche and victory – it's been said that ANDIAL-prepared cars and engines have claimed victories on every major racetrack in this country. As its founders retired and the company focused on smaller specialty projects, ANDIAL's business model changed, but its relationship with Porsche remained strong. In early 2013, it was announced that the Porsche Motorsports North America, Inc. (PMNA) had purchased the brand – yet there was still no word as to how the famed ANDIAL name, an anagram made from the names of the founding members – the late Arnold Wagner (AN), Dieter Inzenhofer (DI) and former PMNA president and current consultant Alwin Springer (AL) would be used. Some answers emerged in February of this year when I received a phone call from Porsche. The company offered to have me to visit ANDIAL's shop in Southern California, which is now operating entirely under the direction of PMNA. Entering one of the shop's bays, I found myself face-to-face with a lightly used 997 GT3 Cup racecar. The vehicle was in the early stages of a complete teardown and rebuild – in preparation for its rollout in traditional red, white and blue ANDIAL livery.