With the European Union tightening restrictions on carbon emissions, danger has been spelled out in big bright letters for the sportscar-makers we know and love. The bulk of the world's best supercar manufacturers – including Ferrari, Lamborghini, Lotus, Aston Martin and Porsche – reside in Europe, but while industry executives continue to campaign for exception and protection, things don't look good. There are, however, a few solutions that could keep the exotic automakers in business and unmolested.
Firstly, both automakers and lawmakers agree on the need to reduce weight, which helps neither emissions nor performance. However, weight reduction itself won't bring the supercars below the 120g/km target touted by the EU. One possible solution would be to give niche automakers an exemption, noting that the few cars they produce are rarely driven anyway. According to Lamborghini CEO Stephan Winkelmann, exotic automakers like his "are representing Europe to the world" and "are a species to protect", much like an art form. That's something we car lovers can appreciate, and if it strikes a cord with the lawmakers it could help some of the smaller independent automakers like Aston Martin and Lotus, but it won't help the likes of Ferrari and Lamborghini, which are part of bigger auto groups Fiat and Volkswagen, respectively. Fiat CEO Sergio Marchionne has argued that it would be unreasonable to force low-polluting little Fiats like the Panda and the 500 to bear the burden of their more polluting cousins from Ferrari and Maserati simply because they happen to be under common management.
At the end of the day, these exotic sportscars are not the big problem, though they do make easy targets. If European Union bureaucrats ignore the former and focus on the latter, Europe's most famous automakers could be legislated right out of business.
Porsche is one step closer to its goal of purchasing Volkswagen. Back in April of last year, the German automaker passed the 30-percent mark, forcing it to make an outright offer for The Volkswagen Group in its entirety, which it did. Not too many VW shareholders sold their stake to Porsche, as the bid was for the bare minimum amount allowed by law. Still, the legal requirement had been met, allowing Porsche to continue gobbling up the automaker according to its own timetable. Earlier this year, the VeeDub board approved a request by Porsche to obtain 51-percent of the company for some $15.73 billion, which would give it a majority stake. Before the house that Ferdinand built could complete its acquisition, the European Commission required it to make one last purchase, which took place in June of this year. Finally, the EU has granted its permission for the buyout.
This story is likely far from over, as the German State of Lower Saxony still claims a 20-percent stake in Volkswagen, which gives it certain rights to block decisions made by VW's new parents. Still, it seems that its only a matter of time before VW and Porsche are united under a different Ferdinand... Piech that is, grandson to Mr. Porsche himself.
How much do marketing angles play into consumer choices? The European Union apparently thinks a lot. For instance, we've recently seen all tobacco sponsorships pulled from motorsports, such as the world's most popular, Formula 1. Now it seems that automobile advertisements will be the next form of media ordered to clean up its act. Potential new rules that are currently in draft form and up for review by the College of Commissioners call for the inclusion of fuel consumption and carbon emission warnings on all vehicle advertisements, just like health warnings are included on packs of cigarettes. It is suspected that the legislation follows a previously published report that suggests 20 percent of every automobile ad should address environmental concerns. Arguments against the proposition claim that it will lead to lost revenue from decreased advertising by automakers who don't want to publicize how dirty their cars are. Would the Bugatti Veyron buyer really be swayed from his or her decision by seeing a single digit city fuel economy rating staring back from within the pages of Robb Report? We think not.
In a move that may undermine Germany's protection of Lower Saxony and its close ties to Volkswagen, the European Commission plans to review the case of Volkswagen Law in the European Union's top court. As you may recall, Porsche has been trying to take majority control of rival Volkswagen. However, the so-called "Volkswagen Law" has protected VW from takeover by allowing the state of Lower Saxony (where thousands of VW jobs are at stake) to retain just enough stock in the company to prevent Porsche from capturing a majority vote. While the upcoming ruling may not only alter the ownership of Volkswagen, it also demonstrates the escalating authority that the European Commission has over once sovereign countries.
