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Volkswagen's Porsche Being Probed by German Prosecutors

Porsche, a brand of Volkswagen AG VLKAY, is encountering an official probe by German prosecutors, per Bloomberg news. This probe pertains to the manipulation of diesel emissions by Porsche which specializes in high-performance sports cars, SUVs and sedans.

Per the news, German prosecutors have escalated an informal investigation into allegations that Porsche brand may have deceived customers by selling autos with software that manipulated emissions. Although the probe did not name any individual suspect, investigators are looking into the roles of employees at the Porsche brand in Germany and the U.S.

Presently, Volkswagen is facing other diesel-fraud probes in its home country. This includes investigating 37 suspects at Volkswagen by Braunschweig prosecutors, as well as an investigation by the Munich prosecutors, who are looking into an unidentified number of suspects at the Audi unit.

Volkswagen has outperformed the Zacks categorized Automotive - Foreign industry in the last three months. The company’s share price has increased 9% during this period compared with industry’s gain of 2.1%.

Currently, Volkswagen sports a Zacks Rank #1 (Strong Buy).

Some better-ranked stocks in the auto space are Allison Transmission Holdings Inc. ALSN, Cummins Inc. CMI and Continental AG CTTAY. While Allison Transmission Holdings sports a Zacks Rank #1 (Strong Buy), Cummins and Continental AG carry a Zacks Rank #2 (Buy). You can see  the complete list of today’s Zacks #1 Rank stocks here.

Allison Transmission has an expected long-term growth rate of 11%.

Cummins has an expected growth rate of around 11.7% in the long term.

Continental has an expected long-term growth rate of 7.8%.

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Volkswagen AG (VLKAY): Free Stock Analysis Report
Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report
Cummins Inc. (CMI): Free Stock Analysis Report
Continental AG (CTTAY): Free Stock Analysis Report
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