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New investor allows Suzuki to fend off VW

After years of legal wrangling, the long-soured partnership between Volkswagen and Suzuki looks finally to be coming out of arbitration, according to Bloomberg. As a sign of the Japanese brand's improved fortunes, hedge fund Third Point LLC recently bought an undisclosed stake in the company. The investor reported seeing a major opportunity in the successful Maruti Suzuki business in India. As an investment, the only major problem that Third Point found with Suzuki was its legal battle with VW. "The company's greatest asset is its low-cost manufacturing process for vehicles for the emerging market consumer," the fund said in a letter, according to Bloomberg. Third Point reportedly also wants a seat on Suzuki's board, despite being a minority shareholder. The alliance between Suzuki and VW goes back to late 2009. In the deal, the Japanese brand was meant to get access to cutting-edge tech, and the German firm got a helping hand towards better establishing itself in India and Southeast Asia. Things didn't go as planned, though. Less than two years later, Suzuki's boss publicly derided the deal. Eventually, the allegations started going back and forth, and the two have been working out a way to untangle practically ever since. Among the biggest issue has been how to get back the 19.9 percent stake that VW purchased. According to Bloomberg, the arbitration is now technically over. With the divorce nearly final, the two sides are just waiting on a decision on how to split things up. Suzuki may even just buy VW's stake to get the shares back.

The tumultuous history of the diesel engine

Volkswagen, diesel's most enthusiastic patron, deceived everyone about the amount of emissions its cars were putting out. We have covered this latest massive automotive scandal in great detail, and there are surely more fascinating revelations to come. It turns out that this is just the latest episode in the epic story of the controversy and intrigue surrounding the diesel engine, and its inventor. This is the story of the tumultuous birth and interesting evolution of the compression-ignition engine at the center of the VW scandal. Napoleon III Got Rudolf Diesel Deported Rudolf Diesel was born in Paris in 1858. His Bavarian parents had settled in France where his father, Theodor, was a leather goods manufacturer. When the French Parliament declared war on Prussia, kicking off the Franco-Prussian war, the Diesels fled to London. When he was 12, Rudolf went to live with his aunt and uncle in the Bavarian university town of Augsburg. It was his parents' hometown, and importantly, it's where Rudolf began studying at the Royal County Trade School. His time in Augsburg, graduating at the top of his class from trade school that laid the groundwork for all that was to come. Diesel Nearly Blew Himself Up An early career in refrigeration saw Diesel running R&D in Berlin for Linde, a company started by refrigeration pioneer Carl Von Linde, one of Diesel's professors. His ambition to branch out beyond refrigeration, and his deep understanding of thermodynamics, led to efficiency experiments with steam engines. Diesel was trying to create an engine that didn't waste heat from the combustion process, therefore getting the most work out of the fuel. Instead, he was nearly killed when an experimental ammonia vapor steam engine exploded. Recovery took many months, and during some of that time, he was no doubt planning his next experimental engine, based on the theoretical Carnot cycle. His Engine Was An Attempt To Stick It To The Man Steam engines were expensive to run and wasteful. Diesel thought the efficiency of his design would be a way for the small business to compete with the dominant industrial giants. It was, and it did, but big business is equally passionate about chasing efficiency. Diesel engines quickly proliferated in industries both grand and cottage. Rudolf Didn't Really Invent The Diesel As We Know It Instead, he improved an existing one to a significant degree. The Diesel engine could be considered an evolution of the "hot-bulb" engine.

Volkswagen reportedly to name Matthias Muller CEO

Porsche chief executive officer Matthias Muller is expected to be named CEO of Volkswagen AG, the Wall Street Journal and other sources reported Thursday morning. Muller, 62, has led Porsche since Oct. 1, 2010, and jumpstarted the sports-car brand's expansion around the world. He replaces Martin Winkerkorn, who stepped down Wednesday amid the company's worsening diesel scandal. At least three more executives are also expected to be fired, including Volkswagen's US chief and the heads of Audi and Porsche research and development. Both brands are divisions of VW. A US spokesman wouldn't confirm the reports. An official announcement is expected at VW's board meeting on Friday. Muller's ascension caps a stunning week of turmoil for Volkswagen, which manipulated software to make its diesel-powered vehicles appear cleaner during testing that they are in real-world driving. The charges were revealed last week by the EPA, which cited the work of researchers at West Virginia University. About 482,000 vehicles are affected in the United States, which will be subject to recall, and VW estimates about 11 million of its vehicles around the world have the rigged software. The well-regarded Muller was viewed as a front-runner for the job even before Winterkorn stepped down. Before helming Porsche, he oversaw all vehicle projects globally for VW from 2007-2010. Previously, he was in charge of the Audi and Lamborghini product lines, and earlier in his career was responsible for the Audi A3 program in the 1990s. He joined Audi in 1977. He's trained as a toolmaker and studied information technology in Munich. His last name is sometimes spelled Mueller in English. Muller faces immediate challenges as he takes over VW's sprawling 78-year-old industrial empire, including recalls and regulatory actions around the world. In the US alone, the company faces a fine of up to $18 billion. VW, an industrial symbol of Germany, is also far larger than any unit Muller has run in his career. While Porsche sold 189,849 vehicles in 2014 globally, it's one of many VW brands. Collectively they sold 5.04 million vehicles through the first six months of this year, making Volkswagen the world's largest automaker. Related Video: