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The VW law

 

Strange as it may seem there is such a thing and it’s all over the news right now.

And what does the VW law have to do with this blog? Well it’s simple. And complicated.

The law gives the Lower Saxony federal government the right of veto even though it only has a 20% share in the company and not have the required 25%.

This gets Porsche who have a 30% stake in the company, all fired up. "We are firmly convinced there's no need for a VW law," they say.

And no wonder. Under the proposed EU cars legalisation, Porsche is reliant on a clause to allow pooling, where companies who sell “premium” (roughly translated as big gas guzzling) cars will be able to pool together with companies that produce smaller and cleaner cars. So Porsche can pool with VW to use its saving to offset its own high emissions.

But imagine if the VW law is scrapped, EU Internal Market and Services Commissioner Charlie McCreevy intends – then Porsche can take over VW and use its smaller models as part of its own corporate fleet average. Job done for Porsche, but another road crash for the climate.

Comments

I don't know why it's so hard for some companies to start producing cars that save more on gas.... although huge changes are needed, even small strides by these companies can be a good step in the right direction....

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