With stricter CAFE standards staring down the world’s automakers, every company is looking for an edge to meet the new requirements. Some are turning to alternative fuels while others are shifting their focus from SUV to more fuel efficient crossovers. But it appears as though at least one automaker will be buying its way in to compliance with the new rules.
Porsche just purchased a majority interest in Volkswagen and it looks as though the acquisition could help Porsche squeak past the new CAFE requirements. Porsche tired late last year to get an exemption CAFE regulations but was denied. Last year Porsche paid $4.6 million in U.S. fuel economy fines but the tie up with VW could significantly raise Porsche’s corporate average fuel economy.
That’s because Porsche could merge its vehicles’ fuel economy ratings with VW’s in the coming years. Such a practice is not unheard of in the industry as Ford currently averages its vehicles with Mazda — despite a minority ownership — and Chrysler did the same when it owned Mitsubishi.
According to AutoWeek, VW’s 2007 car fleet average fuel economy was 28.6 mpg — just above the mandated 27.5 mpg U.S. standard. However, like Porsche, VW’s light trucks did not meet the current standards.
Adding Porsche to the VW mix would no doubt lower VW’s figures, but with VW planning several new fuel-sipping models, everything could even out. However, it remains unclear if even the most frugal models could help average out Porsche’s lineup when the 35 mpg hits in 2020.
But it look as if — at least in the short term — VW’s high fuel economy average could allow Porsche to continue building high-performance machines. Porsche will likely help itself in the coming years too with more fuel efficient models such as a diesel-powered Cayenne, a smaller SUV and even a few hybrids.
03/25, 4:47 PM
posted by:
johnnycanuck
This reminds me of the games pro sports franchises play with the salary cap.
03/25, 4:51 PM
posted by:
RicardoHead
johnnycanuck Is that like a dutch cap?
03/25, 5:43 PM
posted by:
G
Wait … I’m assuming that low-volume producers are exempt from CAFE then right?
Like Ferrari and Lambo …
Porsche definitely ISN’T a low-volume producer. They’re everywhere! It’s hard to look at any major road for more than 2 minutes without seeing one.
03/25, 6:06 PM
posted by:
inline6
Uh, that’s the same logic that says nothing existed before I was born, and people I’ve never seen don’t really exist.
Porsche is definitely a low-volume auto producer. Worldwide, they’ve never broken 100,000 annual units.
For being an independent company, I’d say that’s low volume. It isn’t cottage industry, by any means, but it’s low volume certainly.
03/25, 7:32 PM
posted by:
broadrun96
Porsche went over 100K units last year and next year will be even higher. As for low volume production, 100K is definately NOT the line for low volume, esp when Ferrari sold all of 5700 units last year and was their record by about 10%.
03/25, 7:33 PM
posted by:
broadrun96
sorry, that was 5700 in 2005, not sure about the 07 number if released yet
03/25, 10:04 PM
posted by:
autonut
Porsche never denied that the reason to buy VW is to pass CAFE and European (much more draconian) regulations on fleet emission.
03/25, 10:48 PM
posted by:
CJC
what this tells us yet again is the Corporate Fleet Average creates the incentive to build extra cars to satisfy regulations so that the regulation-deficient cars may continue to make the money.
03/25, 11:04 PM
posted by:
CJC
Porsche is just buying VW to play with numbers as Toyota et al do when they overproduce certain models to satisfy regulations and not the market. Anyone see the wastefullness in this?
03/26, 8:30 AM
posted by:
1c3d0g
Uhm…who cares?
CJC: right on!
03/26, 11:41 AM
posted by:
A4
i hate porsche
03/26, 3:03 PM
posted by:
SS4LIFE
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