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Porsche raises VW stake

Porsche raised its stake in fellow German automaker Volkswagen on Tuesday to more than 35 percent — a move that it said gives it effective control over Europe's biggest car maker.

Porsche Automobil Holding SE previously held a stake of a little more than 30 percent and has said it plans to raise that to a majority holding. It said it acquired an additional 4.89 percent for an unspecified amount on Tuesday — taking its share of the voting rights to 35.14 percent.

Porsche said in a statement that "as a result of this acquisition, Volkswagen ... has become a subsidiary of Porsche Automobil Holding SE" under German securities laws.

"This step ensures that Porsche has a lasting majority at the VW annual general meeting," the Stuttgart-based company said. It added that employee representatives of Wolfsburg-based Volkswagen will now take seats on Porsche's employee council and supervisory board.

"Our goal continues to be to increase our stake in Volkswagen to more than 50 percent," Chief Executive Wendelin Wiedeking said. "Today's step is a further milestone along this road."

Wiedeking also voiced hope for "a quick resolution of the conflict between the employee representatives of Porsche and VW."

Representatives at the two companies have tussled over the future distribution of employee council and supervisory board seats, with Volkswagen representatives fearing that their counterparts at the smaller Porsche will dominate.

Volkswagen employee council chief Bernd Osterloh said the council "takes note" of Porsche's move to raise its stake and may yet take further legal action over its rights. He added that "Volkswagen must remain Volkswagen."

Porsche said the changes resulting from Tuesday's move meant that it is now required under German law to make a formal offer for Volkswagen's Audi luxury car subsidiary, but made clear that it would only go through the motions.

It said it would offer only the minimum price prescribed by law — likely about €487 (US$695.31) per Audi share — and that VW has stated it would not accept that offer for the 99.14-percent stake it holds in Audi.

"We regard Audi as an integral part of the Volkswagen group and have no interest in removing the company from the group structure," Wiedeking said.

One remaining obstacle to full Porsche control over VW is a German government plan that would allow Volkswagen's second-biggest shareholder — the state of Lower Saxony, where its Wolfsburg headquarters is located — to continue blocking "significant decisions."

A European court recently struck down a long-standing law protecting VW from a hostile takeover, but the government drew up legislation that would still allow a shareholder with 20 percent of the stock a blocking minority. The European Commission objects to that plan.

Lower Saxony holds just over 20 percent; Porsche argues that the blocking minority at Volkswagen should be 25 percent, in keeping with standard German securities laws.

Tim Urquhart, an autos analyst with Global insight in London, said that saga could drag on.

"There's certainly no endgame in sight. That creates uncertainty and that's bad for the shares," he said.

Urquhart also sees the future relationship between Porsche and Audi as a possible source of future controversy.

"The two brands have competing models in every single model segment that Porsche is involved in, with the (Audi) TT lining up against the (Porsche) Boxster and Cayman, and the Audi R8 sports car positioning itself in the spot traditionally occupied by Porsche's iconic 911," Urquhart wrote in a research note earlier this week.

Shares of Porsche Automobil Holding were down 2.7 percent at €82.11 (US$117.23) in late Frankfurt trading.

Volkswagen shares were up 6.2 percent at €219.86 (US$313.91). Audi shares rose 2.6 percent to €489.05 (US$698.24).

Chuck Barney: 'Knight Rider' falls short of high-octane thrills

Yeah Yeah OK, THE CAR talks. Yeah, we get it. Now, will someone please make the car shut up?

This is sure to be among the initial reactions to the opening episode of "Knight Rider," NBC's update of the goofy 1980s campfest in which a macho crime fighter and his chatty, revved-up vehicle chase down bad guys while leaving skid marks everywhere.

Our crime fighter in this case is Mike Traceur, played by hunky Justin Bruening, who takes over for David Hasselhoff. But let's face it: "Knight Rider" is all about the car, and this isn't your daddy's K.I.T.T.

It's a tricked-out Ford Mustang that can go all "turbo-boost" on you and deflect bullets, hack computers, morph into various shapes,

use holographic imagery to elude villains and probably even do the laundry if needed.

Oh, and it talks. And talks and talks and talks.

Voiced by Val Kilmer in a monotonous monotone, the modern K.I.T.T. distributes valuable intel to Traceur during ultra risky missions and provides steady guidance during tire-screeching chases, of which there are many.

But it also has some very loose lips. At one point, K.I.T.T. comments on what he believes to be a budding romance between Traceur and his former girlfriend Sarah Graiman (Deanna Russo) by noting he has detected the "release of pheromones and other signs of sexual arousal." Let's just hope they never invent a GPS system that goes there.

Actually, when it comes to acting,

K.I.T.T. and Bruening are nearly equals. Bruening pretty much coasts on his good looks while playing a James Bond-like playboy whose love of the ladies often distracts him from the job at hand. Loads of lame dialogue don't help.

But no one expects "Knight Rider" to be "Masterpiece Theatre." As executive producer Gary Scott Thompson has asserted, they're aiming for "pure bubblegum fun" played with tongue in cheek and a twinkle in the eye. For proof of that, look no further than tonight's absurd sequence that has Bruening and Russo getting naked while trapped inside a burning K.I.T.T. — to avoid overheating, of course.

On the other hand, "Knight Rider" goes bumper-to-bumper with stock characters in stock situations. As for the funny spy stuff? Well, it's done so much better on another NBC show, "Chuck."

You'd have thought that NBC would have learned its lesson about remakes from last season's "Bionic Woman," which started strong and then conked out fast. It's easy to imagine this show following a similar route — with viewers, at first, lured by the new-car smell, only to quickly go looking for another ride.

IS LESS MOHR? Comedian Jay Mohr long has specialized in caustic characters (see: "Action"). But now he's sanding down the rough edges and ceding most of the abrasive zingers to Paula Marshall for "Gary Unmarried," a new domestic sitcom from CBS.

Mohr plays a blue-collar father of two trying to get back on his feet after divorcing Allison (Marshall), his controlling wife of 15 years. But it isn't easy, as Gary struggles to balance his daddy duties with a new girlfriend (Jaime King) and cope with the shocking news that Allison has become engaged to their former marriage counselor (Ed Begley Jr.).

The new, mellowed Mohr is certainly likable enough and there are traces of potential here. But that potential won't be realized unless "Gary" can scratch up more laughs than tonight's pilot contains and find a way to feel less generic. Let's hope it can for the sake of poor Marshall, who has had a run of bad luck with short-lived series ("Cupid," "Snoops," "Cursed," among others) and gained the unfortunate label of "show-killer."

2008 Subaru Impreza WRX STI

Speed like thunder. This newly refined Impreza raises speculation about its mesmerizing appearance and upgraded refinements.

2009 Audi A8

Solid & Hot 2009 Audi A8 Summary

The 2009 A8 is a 4-door, up to 5-passenger luxury sedan, available in 3 trims, ranging from the Sedan to the L W12.

Upon introduction, the Sedan is equipped with a standard 4.2-liter, V8, 350-horsepower engine that achieves 16-mpg in the city and 23-mpg on the highway. The L W12 is equipped with a standard 6.0-liter, W12, 450-horsepower engine that achieves 15-mpg in the city and 21-mpg on the highway. A 6-speed automatic transmission with overdrive is standard on both trims.

The 2009 A8 is a carryover from 2008.