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Roger Rodas' Widow Suing Porsche Over Carrera GT Crash

Investigations undertaken by local law enforcement may have vindicated Porsche from any wrongdoing in the crash that killed actor Paul Walker and racing driver Roger Rodas last year, but the latter's widow is apparently not convinced. According to emerging reports, Kristine Rodas has filed a lawsuit seeking unspecified damages from Porsche Cars North America. In her suit filed with the Los Angeles Superior Court, Rodas' attorney Mark Geragos reportedly disputes the findings of the Los Angeles County Sheriff's Department, which asserted that the vehicle was traveling at an unsafe speed of 90 miles per hour on city streets, identifying the speed as the cause of the accident. Instead the lawsuit claims that the vehicle was only going 55 mph and that the cause of the crash was improper equipment – namely a faulty right rear suspension and the lack of a crash cage and proper fuel tank. "The Carrera GT was unsafe for its intended use by reason of defects in its manufacture, design, testing, component and constituents, so that it would not safely serve its purpose," according to the specifics of the suit obtained by the Los Angeles Times. When reached for comment, Porsche Cars North America spokesman Nick Twork told Autoblog: We are very sorry for the Rodas and Walker family's loss. The crash was the subject of a detailed investigation by the proper authorities (L.A. County Sheriff and California Highway Patrol), and their investigation disproves the allegations in the lawsuit. The investigation found that driving at a high speed in a negligent manner caused the crash and concluded that there was no mechanical defect. The Carrera GT is known as a difficult car to drive. As the LA Times report points out, Jay Leno spun one at Talladega in 2005, and the following year, Porsche paid part of a multi-million-dollar settlement after two were killed on a track when their Carrera GT struck a slower-moving Ferrari. The Rodas lawsuit could very well point to that previous suit from San Diego Superior Court. Whether the court in LA will hand down a similar ruling remains to be seen.

Audi CEO's Dieselgate arrest threatens fragile truce among VW stakeholders

FRANKFURT — The arrest and detention of Audi's chief executive forces Volkswagen Group's competing stakeholders to renegotiate the delicate balance of power that has helped keep Audi CEO Rupert Stadler in office. Volkswagen's directors are discussing how to run Audi, its most profitable division, following the arrest of the brand's long-time boss on Monday as part of Germany's investigations into the carmaker's emissions cheating scandal. The supervisory board of Audi, meanwhile, has suspended Stadler and appointed Dutchman Bram Schot as an interim replacement, a source familiar with the matter said on Tuesday. Schot joined the Volkswagen Group in 2011 after having worked as president and CEO of Mercedes-Benz Italia. He has been Audi's board member for sales and marketing since last September. The discussions risk reigniting tensions among VW's controlling Piech and Porsche families, its powerful labor representatives and its home region of Lower Saxony. VW has insisted the development of illegal software, also known as "defeat devices," installed in millions of cars was the work of low-level employees, and that no management board members were involved. U.S. prosecutors have challenged this by indicting VW's former chief executive Martin Winterkorn. Stadler's arrest raises further questions. Audi and VW said on Monday that Stadler was presumed innocent unless proved otherwise. Munich prosecutors detained Stadler to prevent him from obstructing a probe into Audi's emissions cheating, they said on Monday. Stadler is being investigated for suspected fraud and false advertising. Here are the main factors deciding the fate of Audi. Background: Audi's role in Dieselgate Volkswagen Group was plunged into crisis in 2015 after U.S. regulators found Europe's biggest carmaker had equipped cars with software to cheat emissions tests on diesel engines. The technique of using software to detect a pollution test procedure, and to increase the effectiveness of emissions filters to mask pollution levels only during tests, was first developed at Audi. "In designing the defeat device, VW engineers borrowed the original concept of the dual-mode, emissions cycle-beating software from Audi," VW said in its plea agreement with U.S. authorities in January 2017, in which the company agreed to pay a $4.3 billion fine to reach a settlement with U.S. regulators.

VW makes $23K on every Porsche sold, more than Bentley or Lamborghini

It's a good time to be in the luxury car business. In Volkswagen Group's financial report for the 2013 fiscal year, it is revealed that that Porsche enjoyed an operating margin of 18 percent. That means the Stuttgart brand made on average about $23,200 per car sold, according to BusinessWeek. Bentley wasn't far behind, and Audi (which was combined with Lamborghini) posted a 10.1 percent margin. This compares to only around 2.9 percent for the Volkswagen brand.
"Luxury brands are on fire," said Dave Sullivan, an industry analyst at AutoPacific. He said that the average profit margin is between six and eight percent. Brands like Porsche and Bentley have the benefit of competing in rarefied markets. Buyers looking at one their vehicles have fewer models to shop against and don't care as much about price. They can also charge more for options, which further boosts income, according to BusinessWeek.
In a way, we should be more impressed by the continued success from Audi. Its models generally have direct competitors in every segment from the other premium automakers. Plus, their buyers aren't the captains of industry who are shopping for a Bentley. Still, the Four Rings is leading rivals in sales so far this year.