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A regional court in Stuttgart on Wednesday told German carmaker Porsche it would need to pay a total of some €47 million ($54 million) in damages for what judges felt was its faulty information policy surrounding the Volkswagen Group’s large-scale emissions-cheating scandal that broke in 2015.
The court, whose verdict is not yet final, found that Porsche as Volkswagen’s largest shareholder was in breach of its obligation to publicly disclose information with a potential to influence the carmaker’s share price.
The judges reasoned that Porsche revealed news related to VW’s emissions-cheating scam too late for investors to react in time.
The pollution scandal involving the use of defeat devices in about 11 million vehicles globally to manipulate emissions levels in laboratory tests was first revealed in 2015 and has since led to billions of dollars in compensation payments and multiple lawsuits in the US and other nations. It also contributed to a push for more stringent car pollution standards in the European Union.
Rough deal for investors
The Stuttgart court found that Porsche shareholders should have been informed about irregularities at the carmaker as early as 2014, assuming that executives must already have known about the cheating scheme.
Investors lost millions when VW shares plummeted after the scandal broke in September 2015, with no profit warning alarming them prior to the hefty market reaction.
Both Porsche and VW have denied any criticism of their information policy, with Porsche likely to appeal Wednesday’s verdict.
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Carmaker Porsche turns 70
The first of its kind
A cult brand is born: On June 8, 1948, the 356 No. 1 Roadster received its operating permit. It was the first vehicle to wear the name Porsche. 50 years later, that car was damaged when it fell off a plane pallet. Luckily, it survived the drop from a height of several meters. Today, the refurbished Roadster can be admired in the Porsche museum in Stuttgart.
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Carmaker Porsche turns 70
The father of the 356 is…
…Ferdinand Anton Ernst Porsche, nicknamed Ferry. Without him, neither the 356 nor the 911 would exist. Over five decades, Ferry shaped the sports carmaker as CEO and chairman. His father, Ferdinand Porsche, also built vehicles — for Volkswagen. Ferdinand’s biggest task was to develop the predecessor of the VW Beetle, which Hitler thought would mobilize the masses.
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Carmaker Porsche turns 70
Luxury in times of need
The first Porsche was presented to the public only a few years after World War II. Needless to say, sports cars weren’t exaclty what people needed in those trying times. Over the years, however, Ferry Porsche and his brand were able to assert themselves. “We build cars which nobody needs, but everybody wants,” he said.
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Carmaker Porsche turns 70
Popular all over the world
It took Porsche almost half a century to sell 1 million sports cars. from then on, though, production accelerated rapidly: The latest million Porsches didn’t even take five years to leave showrooms. In 2017 alone, more than a quarter million vehicles left the assembly lines, and over the last decade, Porsche sales have more than tripled.
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Carmaker Porsche turns 70
David vs. Goliath
In the mid-2000s, the small carmaker tried to hit it big by attempting to take over Germany’s Volkswagen giant. The plan, however, didn’t pan out. Today, a holding company called Porsche SE owns the majority of VW, while Porsche Corporation, which builds the cars, was incorporated into the VW Group.
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Carmaker Porsche turns 70
Dark clouds gathering
For decades, Porsche cars relied on diesel engines. That changed with the rise of SUVs, which also had diesel models fitted with engines from VW brand Audi. This is how Porsche, too, was sucked into the dieselgate scandal.
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Carmaker Porsche turns 70
In the crosshairs
Former VW bosses Matthias Müller (left) and Martin Winterkorn were suspected of fraud and market manipulation as share holders of Porsche SE Holding were allegedly informed too late about the pollution scandal. Porsche SE is a holding company of the Porsche and Piëch families who together hold 52.2 percent of voting rights of VW’s ordinary shares.
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Carmaker Porsche turns 70
Betting on electricity
Porsche’s first electric model is to hit the market in 2019, with a range of more than 500 kilometers (310 miles) and fast-loading capability — at least that’s what the sports carmaker has promised. Further models are expected to follow, also in cooporation with VW Group brand Audi. Porsche wants to invest €6 billion ($7 billion) in e-mobility by 2022,
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Carmaker Porsche turns 70
Record sales
Porsche expects 2018 to be another record-breaking year in terms of sales. After all, more and more people seem to share Walter Röhrl’s sentiment: The legendary German rally driver once called a garage without a Porsche 911 a “dull, empty hole.”
Author: Insa Wrede (bb)
hg/mm (Reuters, dpa)
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