Autoblog

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.

[Source: Reuters]

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.

[Source: Autocar UK]

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.

[Source: Automotive News Europe, subs. req'd]

In what seems like an official bookend to the sale of Jaguar and Land Rover from Ford to Tata, the European Union, like the U.S. Federal Trade Commission, has given its official seal of approval to the deal. The E.U. had received no complaints regarding the impending purchase, so approval of the $2.3 billion deal had been expected. In fact, the "simplified procedure" used by the European Commission has never ended up with anything but acceptance. No more speed bumps appear ahead of the Indian automaker, which previously had specialized in small and inexpensive vehicles. Now that these formalities are over and done with, hopefully we can simply look forward to what an injection of cash can do to the two classic British marques.

[Source: Automotive News - sub. req'd]

We see it every day on TVs here in the states; commercials complete with warnings about side effects that range from impotence, vomiting, or uncontrollable bowel movements. And that's just for curing toenail fungus. The European Union is noodling the idea of using warnings in car commercials, with the aim of arming consumers with the knowledge of how the vehicle impacts the environment. While requiring automakers to include CO2 and fuel use impact in their advertising seems like a decent idea, the rest of the EU proposal would never fly here in the US. The proposal also calls for limiting all vehicle speed limits to 101 MPH, with the rationale that it makes no sense that automakers increased power by 28% since 1994 even though no country raised their speed limits. Blame it on the Autobahn -- it's hard to raise the limit above "no speed limit."

The proposal, which will be debated by the European Parliament in October, also recommends banning all advertising that promotes high speed driving capabilities, which makes zero sense if the EU bans driving over 101 MPH anyway.

[Source: The Truth About Cars]

Three days ago we scoffed at an EU official's suggestion that a speed limit should be applied to the remaining sections of Germany's famous Autobahn that remain free to speed. While reports indicated that speed-loving Germans were up in arms over the idea, a recent poll shows that two in three believe a speed limit should be instituted. Whaa? Conducted by ZDF television, the poll showed that 54% of those surveyed favor an 80 mph speed limit, while 10% would like a limit even lower. There were still around 35% of the respondents, which would thankfully include German Transport Minister Wolfgang Tiefensee if he were polled, who don't want a speed limit at all.

The controversy over speed limits on the Autobahn stems from suggestions that an over excited right foot leads to lots of wasted energy, which obviously ain't too good for the environment. Interestingly, the survey also showed that 56% of those polled think flights should be taxed more because of their negative impact on the environment. Yeah, that's right! Cap our cars, we'll tax your planes!

[Source: Automotive News - sub. req'd]

Say it ain't so. An EU official has gone on record suggesting that Germans should give up their beloved freedom to speed on stretches of the country's famed Autobahn in deference to the EU's more aggressive climate change policy. Reports from Germany are that the nation's people find the suggestion ludicrous, farcical and a downright threat to their freedom. The popular German slogan "free driving for free citizens" has been ringing out on internet sites collecting reactions to the proposal.

It certainly doesn't sound as if capping the speed limit across the Autobahn is going to happen, but nevertheless a debate has begun about what many consider to be a waste of fuel and needless emissions created by blasts down the Autobahn. While it's tough to argue that most people travelling at triple digit speeds aren't doing it just for fun, instituting a general speed limit based on the argument that energy is needlessly wasted strikes us a slippery slope. Formula 1, on those grounds, is a needless waste of energy, or at least one fans could forego. All motorsports, for that matter, could be targeted with this argument.

It seems to us that the proper way to address unlimited speed on the Autobahn and the extra emissions it creates are to encourage automakers and entrepenuers to develop high-performance sports cars that are also more environmentally friendly. Freedom not only includes the choice to drive fast, but also to do so in an environmentally responsible way if one's available.

[Source: Indystar]

The days of unrestricted speeds on portions of Germany's autobahn may be numbered, but they will continue for at least the immediate future, thanks to their plucky Chancellor. The lucky souls who have a valid passport, a current license, a capable car and the will to challenge themselves will be able to do so without legal entanglements a bit longer.

German Chancellor Angela Merkel just added her support to legal measures that will help keep the country's autobahnen free of speed limits, Greenies be damned! OK, she didn't go that far, but Merkel's support was unflagging even against European Union criticism that Germany could do a little lot more in the fight against harmful automotive emissions. The unrestricted autobahn has been seen as a poster child for what's wrong with the automotive world by some environmentalists.

Follow the jump for the rest of the story.

[Source: Inside Line]

Yesterday, the European Parliament made way for a new law that would standardize all 110 licenses currently employed by the 200 million inhabitants of the European Union.

The move to issue one license throughout the EU came at the behest of both legislators and safety advocates alike, in an attempt to curtail confusion and eliminate abuses in the current system. A number of problems have arose over the last several years, including the phenomenon of "Driving license tourism", where a person who's had their driving privilege revoked in one country for drunk driving offenses or a medical condition, would then travel to another country to secure a valid license.

This new law would also make staged licensing of motorcyclists mandatory across the EU, where beginners would only be permitted to ride small displacement machines until their competence behind the handlebars was established. The addition of a small microchip inside licenses was also addressed in the new legislation, however such a device would not be mandatory.

As with any bureaucratic endeavor, the status quo will continue for some time, as the law will only go into effect in 2013, with all drivers forced to give up their old licenses by 2033.

[Source: EU Observer, Channel4]

Speaking of the Renault-Nissan-General Motors goings-on, leaders at unions in European countries Germany and France have a meeting scheduled to chat about how a deal between Renault-Nissan and General Motors could affect European automotive workers. It's unlikely that union pressure would kill any kind of deal, but it puts France, which holds 15 percent of Renault, in a tricky spot. The United Auto Workers in the U.S. hasn't come out in opposition to the deal, but the union is likely waiting to see what kind of deal shapes up before deciding whether to be for or against.

One issue on the table include how the deal could speed up globalization, sending auto jobs to Eastern Europe from Germany and France. The French union in particular finds it difficult to believe that a deal of such proportions could only hurt Renault's domestic sales, which are currently low.

[Source: Financial Times via MSNBC]