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VW decries charges against chairman, CEO; Daimler fined €870M over dieselgate

TOP NEWS

* Volkswagen AG called the charges brought by German prosecutors against CEO Herbert Diess, Chairman Hans Dieter Pötsch and ex-CEO Martin Winterkorn for market manipulation relating to the so-called 2015 dieselgate scandal as "groundless." Brunswick prosecutors said the trio willfully concealed from investors for nearly two months that the company was being investigated by U.S. authorities for cheating emissions tests.

* German automaker Daimler AG will pay an €870 million fine for violating diesel emission regulations. The Mercedes-Benz parent said the Stuttgart public prosecutor issued a fine notice against the company for "a negligent violation of supervisory duties in the area of vehicle certification in connection with deviations from regulatory requirements in certain Mercedes-Benz vehicles." Daimler said in a news release that it would not appeal the fine because it is in the automaker's "best interest to end the administrative offense proceeding in a timely and comprehensive manner."

CARMAKERS

* Renault SA Chairman Jean-Dominique Senard said he "would be delighted" if the conditions to revive its merger deal with Fiat Chrysler arose, but the deal is off the table, Bloomberg News reported.

* Daimler Group appointed its CEO Ola Källenius as chairman of the supervisory board of Daimler Truck AG and Manfred Bischoff as chairman of the supervisory board of Mercedes-Benz AG as part of its new corporate structure. Källenius was also appointed the chairman of Mercedes-Benz's management board, while Martin Daum was appointed the chairman of Daimler Truck's management board.

* Aston Martin Lagonda Global Holdings PLC announced $150 million in 12% senior secured notes due April 15, 2022, with an option to draw up to $100 million of additional debt to "improve financial flexibility" under certain conditions, prompting a downgrade by S&P Global Ratings. The rating agency downgraded its issuer credit and issue ratings to CCC+ and revised the outlook to negative, saying Aston Martin's new debt pushed past "the amount of term debt and cash interest burden" that it can handle.

ELECTRIC AND AUTONOMOUS VEHICLES

* A 2016 lawsuit filed against Tesla Inc. accused the company and CEO Elon Musk of concealing key facts from shareholders who approved the automaker's acquisition of SolarCity, now Tesla Energy Operations Inc, according to court documents published on legal research website PlainSite. The plaintiffs in the lawsuit challenged Musk's decision to approve a merger with SolarCity and how Tesla stockholder support was solicited. SolarCity, which Tesla acquired in a $2.61 billion all-stock deal, was co-founded by Musk's cousins, according to the documents.

* Volkswagen said it will reorganize and consolidate its Volkswagen Group Research centers in California, Europe and Asia under the Volkswagen Group Innovation banner. The carmaker said the new division will focus on self-driving, artificial intelligence, solid-state battery, fuel cell systems and augmented reality. Volkswagen said it will also invest $100 million into its joint venture with QuantumScape, which plans to produce solid-state batteries by 2025.

* Tesla CEO Elon Musk said it is putting together a "major engineering team" in China to develop car software, Electrek reported, citing new listings for engineers on Tesla's careers website.

* Toyota Motor Corp. will introduce a new variant of its fuel cell-powered Mirai in 2020, Reuters reported, citing Chairman Takeshi Uchiyamada.

* Mazda Motor Corp. said it will showcase its first battery-electric vehicle at the Tokyo Motor Show.

* Chinese automaker Chery will team up with StreetScooter, Deutsche Post's electric van unit, to co-develop electric commercial vehicles in China, Automotive News reported, citing a statement. The companies will invest €500 million in a venture that plans to produce up to 100,000 vehicles a year, with sales set to begin in 2021.

* Chinese SUV-maker Great Wall Motor Co. Ltd. will team up with Huawei to develop smart and electric vehicle solutions, including connected cars, smart cockpits, and cloud and data services for cars, Gasgoo reported, citing the carmaker's social media website.

MOBILITY SERVICES

* Canoo, founded by ex-Bayerische Motoren Werke AG executives, unveiled a ride-sharing electric van, which could be leased to individual drivers with a monthly subscription fee inclusive of repairs and insurance, the Financial Times (London) reported. The seven-seater, which will be rolled out in 2021, is also available for leasing to ride-hailing companies. Canoo, formerly Evelozcity, described the van as "an urban loft on wheels."

* Lyft Inc. will include other modes of transport in its app, including bike and scooter rentals, public transit and car rentals. The app interface will also show estimated travel times across different modes of transport and show a map of all nearby vehicles.

* The Malaysia Competition Commission will ramp up its anti-monopoly investigation into GrabTaxi Holdings Pte Ltd., about a year after the ride-hailing giant acquired Uber Technologies Inc.'s Southeast Asian operations, The Straits Times reported, citing the regulator's CEO Iskandar Ismail. The watchdog will also search for possible bid-rigging practices and cartel behavior, Ismail added.

POLICY, REGULATIONS AND SAFETY

* A senior manager at Fiat Chrysler Automobiles NV was charged with conspiracy to defraud the U.S. after allegedly lying to regulators about the emissions control software used in more than 100,000 diesel vehicles. The U.S. Department of Justice charged Emanuele Palma, a senior manager of diesel drivability and emissions at Fiat Chrysler, with six counts of violating the Clean Air Act, four counts of wire fraud and two counts of making false statements to representatives of the Federal Bureau of Investigation and the Environmental Protection Agency's Criminal Investigation division.

* The U.S. Environmental Protection Agency accused California of failing to "carry out its most basic tasks under the Clean Air Act" and threatened to withdraw billions of dollars of highway funding for the state if California does not withdraw plans that are likely to be denied, Reuters reported. Gov. Gavin Newsom said the agency was retaliating after the state sued the Trump administration for trying to remove state-held authority to set its own greenhouse gas emissions standards for vehicles.

* Nissan Motor Co. Ltd. will recall 1,228,830 vehicles mainly in the U.S. and Canada over issues with the rear visibility system, according to documents from the National Highway Traffic Safety Administration. The vehicles being recalled were also distributed in Israel, Korea and Saipan, according to The Associated Press.

AUTOMOTIVE RETAIL

* AutoZone Inc. said adjusted net income for its fiscal fourth quarter increased 6.1% year over year to $524.3 million, missing the S&P Global Market Intelligence adjusted net income estimate of $540.6 million. Net sales grew 12.1% to $4 billion, beating analysts' mean consensus estimate compiled by Market Intelligence. For the fiscal year ended Aug. 31, diluted EPS rose 30.1% year over year to $63.43, the aftermarket parts retailer said.

* CarMax Inc. said second-quarter net earnings jumped 5.8% year over year to $233.6 million, beating the S&P Global Market Intelligence mean consensus estimate of $220.57 million as sales for the period jumped 9.1% to $5.20 billion. For the three months to Aug. 31, the used-car retailer reported diluted EPS at $1.40, up 12.9% year over year and beating the Market Intelligence estimate of $1.33.

* Online used-car retailer Carvana Co. said it introduced next-day delivery to five sites in Florida, including Deltona, Gainesville, Ocala, Palm Bay and Port St. Lucie. Customers can buy and sell their vehicles on Carvana's website and receive orders across 146 markets in the U.S.

COMMERCIAL VEHICLES

* Commercial vehicle registrations in Europe grew 11% year over year in August to 155,904 vehicles, according to data from the European Automobile Manufacturers Association.

MOTORCYCLES

* Harley-Davidson Inc. shares dropped as much as 3.93% to $34.02 after the motorcycle-maker announced a $1.6 billion restructuring plan. Harley announced plans to launch six new models by 2021 and invest up to $550 million through 2022 and up to $275 million more in capital. The motorcycle-maker added that it plans to have its international business make up 50% of sales and that it plans to have 1 million more customers by 2027.

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The day ahead

Early morning futures indicators pointed to a lower opening for the U.S. market.

In Asia, the Hang Seng declined 1.28% to 25,945.35, and the Nikkei 225 was down 0.36% to 22,020.15.

In Europe, around midday, the FTSE 100 fell 0.86% to 7,227.91, and the Euronext 100 slid 1.32% to 1,074.14.

On the macro front

The new home sales report, the State Street Investor Confidence Index, the U.S. Energy Information Administration Petroleum Status Report and the U.S. survey of business uncertainty are due out today.

Click here to read about today's financial markets, setting out the factors driving stocks, bonds and currencies around the world ahead of the New York open.

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