VW Acquisition To Save Porsche $400M Euros In Emissions Penalties

June 17, 2008

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After it takes over Volkswagen, Porsche will be able to offset the emissions of its high-performance sports cars with those of VW’s more emission-efficient cars, according to Thompson Financial (via Hemscott).

Without VW, Porsche would face an annual 400 million euros penalty.

The EU plans to limit C02 emissions to 120 grams per kilometre after 2012. The new 3.6-litre Porsche 911 has C02 emissions of around 230 grams per kilometre.

Porsche said in February it would fight London’s daily charge for cars with low fuel efficiency.

Environmentalists and the European Commission don’t like a plan by Germany and France to tighten limits on auto pollution, the Herald Tribune reports.

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Reader Comments

This isn’t “environmental” news–quite the opposite. Though I love Porsches and Volkswagens (I’ve owned both), this is simply a business strategy to avoid environmental tax penalties. If the companies don’t merge, Porsche is penalized; if they do, then Porsche doesn’t get penalized. It avoids Porsche having to pay any penalties without actually changing their product–reducing emissions–which is what the tax is meant to encourage. While I’m sure there are other reasons for the merger (Porsche and VW have been connected throughout their histories), in the context of this forum Porsche should be, if anything, criticized for finding a loophole of sorts which allows it to continue producing fuel-inefficient cars without getting hit with the emissions tax.

Erik | June 18th, 2008

History of VW and Porsche have a common origin, when first Volkswagen was created by the engineer Austrian Ferdinand Porsche, who later founded Porsche AG (German sports car manufacturing unit) in 1931. So this is one of its kinds of reunion of families. Management capabilities of Porsche might be very good at running a niche car company but running a small company is entirely a different business than running one of the world’s largest car companies … read more on http://www.wheelsontrack.com

wheelsontrack | July 25th, 2008