VW stake may help Porsche on fuel economy rules - AutoWeek Magazine

Porsche executives say fuel economy and greenhouse gas rules threaten the character of their vehicles. Here are estimates of the challenges they face.
An average Porsche — such as the 2008 Carrera coupe, pictured, with 3.6-liter engine and 5-speed automatic
• Has an EPA fuel economy rating for consumers of 20 mpg
• For government CAFE calculations, it gets credit for 25 mpg
• That’s short of the federal car standard of 27.5 mpg
• If regulators apply a 40 percent increase uniformly, its target could become 35 mpg
• If the European Union requires a 50 percent cut in Porsche’s CO2, the company’s target could become 50 mpg

By HARRY STOFFER, AUTOMOTIVE NEWS

WASHINGTON--Porsche AG may get a fringe benefit from its move to acquire a majority stake in Volkswagen AG: a way to avoid far greater U.S. fuel economy fines without making big changes in its vehicle lineup.

Last fall Porsche lost a bid in Congress to carve an exemption for itself from the tougher U.S. fuel economy standards that are scheduled to take effect between the 2011 and 2020 model years.

But the maker of high-performance vehicles could achieve the same goal by merging its U.S. fuel economy data with VW's in coming years, the experiences of other automakers show.

Ford Motor Co. reports Mazda fuel economy data as its own, even though it has only a minority stake in the Japanese automaker. The former DaimlerChrysler AG included Mitsubishi data in its totals for a few years when it was part owner.


Modest benefits now
At the moment, Porsche would benefit only modestly. VW's light trucks, like Porsche's, do not meet current standards, according to data from the National Highway Traffic Safety Administration.

VW's car fleet averaged 28.6 mpg in 2007, ahead of the 27.5-mpg U.S. standard. VW executives say they intend to expand their U.S. offerings with more small, fuel-efficient vehicles.

It's unclear whether sales of such cars will grow fast enough to beat the rising standards and provide a bigger cushion for thirstier Porsches. Under the new fuel economy standards, cars and trucks together must average 35 mpg by 2020, 40 percent more than today.

Some industry analysts have suggested that a merger of fuel economy data offered a compelling reason for Porsche to seek a controlling stake in VW. But Tony Fouladpour, a spokesman for Porsche Cars North America Inc., said that was not the company's position.


Porsche paid fines
Fouladpour declined to speculate whether Porsche would merge fuel economy data with VW to help Porsche avoid fines. Like BMW and Mercedes-Benz, Porsche routinely has paid fines for not meeting standards under the corporate average fuel economy program, or CAFE. Its peak payout was about $5 million for the 2001 model year.

David Geanacopoulos, vice president for public policy at Volkswagen Group of America Inc., said the merging of fuel economy data "is something to be studied and discussed." No conclusions have been reached, he said.

"We are focused on our own compliance strategy," Geanacopoulos told Automotive News.

But a NHTSA spokesman, while declining to talk specifically about Porsche and VW, said some tie-ups require automakers to report their fuel economy jointly.

Meanwhile, Porsche executives in Europe told Automobilwoche, a sister publication of AutoWeek, that pending European limits on carbon dioxide emissions will be impossible for Porsche to meet without "abandoning its market identity."

Herbert Ampferer, Porsche's manager for energy and the environment, said Porsche cannot offset its obligations with help from Volkswagen because VW has "enough to do" to meet its own goals.

 

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