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Your New Year’s Day hangover is nothing compared to the headache Porsche is currently threatened with. A group of unnamed investors are suing the company for about 2.6 billion dollars over the company’s failed Volkswagen takeover attempt in 2008.
Official details are scarce in the case, but according to OTS newswire as of late Friday, the lawsuit was filed in the district court of Stuttgart, Germany. Additionally, according to a story published by Reuters with sources close to the case suggests the plaintiffs are Elliott Associates, L.P., Elliott International, L.P., The Liverpool Limited Partnership, Perry Partners L.P., Perry Partners International, Inc., DE Shaw Valence International Inc., and York Capital Management Europe (UK) Advisors, LLP.
A statement from the investors explains the suit, though Porsche is insisting the claims are unjustified.
“Porsche gained control over the price of VW common stock as it secretly built enormous derivative positions covering almost all of VW’s freely traded shares, then triggered a massive short squeeze, and finally released billions of euros worth of shares into the short squeeze for its own profit,” said the statement.
Meanwhile, Porsche spokesperson Frank Gaube rejected the notion of the suit calling it unjustified.
Volkswagen is wary of the situation as well. Porsche incurred about $13 billion in debt as a result of their failed 2008 takeover attempt, but lawsuits upheld the merger that happened a year later between the two companies. Volkswagen just seems to be waiting and hoping to avoid the maelstrom of investor anger spawned by the debacle.
[Source: Automotive News]
Volkswagen wants to produce the Tiguan SUV model in North America in an effort to slash production costs on the compact crossover. VW is already producing the Jetta and Passat in North America and is considering moving production of the Tiguan, according to a report by WirtschaftsWocke magazine.
Presently, the Tiguan model is only produced at the Wolfsburg plant in Germany.
The shift in production from Germany to North America will allow VW to guard against exchange rate fluctuations that can eat away at profits, analysts said.
Producing Volkswagens in the U.S will also allow the automaker to keep closer track of changing tastes in the world’s second largest auto market, where consumer trends often originate.
It is unclear whether the Tiguan will be produced at the Chattanooga, Tennessee plant (currently VWs only plan in North America), however, production is scheduled to rise to 150,000 vehicles annually by 2012.
According to a just-released German police report, a driver died at a Volkswagen test track earlier this week. The man’s name was not released, but the report did say that we was a 42-year-old Brazilian. The accident occurred at VW’s Ehra-Lessien test track near the German automaker’s head offices in Wolfsburg. The track is an extensive facility with many different areas and 60 miles of paved roads, and is the location where Volkswagen’s Bugatti division recorded a top speed run of 253 mph in the Veyron supercar (pictured above).
According to the German police the unnamed test driver lost control of his vehicle during a sudden downpour. He managed to stop it without incident but was then hit by another out-of-control vehicle on the same track. The impact trapped the driver and he succumbed to his injuries at the scene. The other driver, a 27-year-old, was taken to Wolfsburg hospital with serious injuries.
The German police and Volkswagen officials are investigating the incident.