The Money Times has recently reported that the European Union’s highest court has finally abolished the Volkswagen Law that protects Europe’s largest automaker from unwanted takeover which exactly what Porsche plans of doing.

This is exactly what the German sports carmaker, Porsche was waiting for. Porsche already owns 31 percent majority stake of Volkswagen and plans of purchasing additional stakes in case the Volkswagen Law is repealed.

In the case before the European Courts of Justice in Luxembourg, the European Commission has stressed that the Volkswagen Law is against the union’s rule of free movement of capital. The court will also order Germany to change its law. The German government has already accepted the decision that is according to Deutsche Welle.

The Volkswagen Law has been adopted by the German government way back in 1960 to protect the state of Lower Saxony which owns 20.1 percent of VW’s shares. Porsche has spent $7 billion to purchase nearly 31 percent of Volkswagen’s shares however it’s voting right remains capped at 20 percent just similar to that of the Lower Saxony’s voting privileges.

 

The German sports car maker Porsche is just one court away from its ambition of gaining complete control of Volkswagen. Porsche has already succeeded acquiring 31 percent stake at the Wolfsburg-based manufacturer and still wanting to take the rest of the majority-stake in ownership in case the European Court of Justice finally rule the “Volkswagen Law” illegal in the upcoming October 23 hearing.

It can be remembered that the Volkswagen law is what keeping Porsche from gaining compete control of Volkswagen and with it repealed gives the German sports car maker the freedom to finally achieve its goal of Volkswagen domination. LOL

So what is this Volkswagen Law? It was implemented after the Second World War and basically prevents anyone or any company from obtaining more than 20 percent of the Volkswagen’s voting rights. The main objective of this law is for the German government as well as the government of the state of the Lower Saxony to get a seat on Volkswagen’s supervisory board.

And for the past four years the European Commission has been examining this law, as a matter of fact the EU advocate-general Damaso Ruiz-Jarabo stressed that the Volkswagen Law is damaging to the European Union in the sense that it hampers the flow of free trade. According to The Times, the European Court of Justice sides with the advocate-general 80 percent of the time.

The acquisition of additional stocks on Volkswagen by Porsche has brought positive results to Europe’s largest automaker especially in terms of stocks which has increase in price significantly.

If ever the European Court of Justice finally invalidates the Volkswagen law, the cost of Porsche takeover will raise due to the price increase. Porsche plans to spend €8.6 billion to buy additional shares on Volkswagen that is in case the VW Law is finally repealed. The German sports car maker has already spent €5 billion for the 31 percent stakes of Volkswagen. The total investment of Porsche is now valued at over €16 billion.

 

Volkswagen will be presenting today its Touareg R50 at the Australian International Motor Show in Sydney. With a power of 258kW/350 PS at 3,500 rpm position the new Touareg as one of the most powerful SUVs in the world.

Volkswagen’s R50 is available in Germany and priced at 88,260 Euro. It will be introduced in the US market this coming November.

The characteristics of its engine set the Touareg R50 distinct from its competition. Its V10 TDI engine helps it to produce an enormous power at 850 Nm at a low 2,000 rpm. The turbo diesel was based from the well-known ten cylinder with 230 kW/313 PS. Moreover the adjustments done on its turbo charging and modified engine management enabled a 28 kW/37 PS increase in power plus a 100 Nm increase in maximum torque. With such added power the SUV can accelerate from 0 to 100km/h in a matter of 6.7 seconds with top speed at 235 km/h.

Despite the engine power and vehicle size, the fuel consumption of the production ten-cylinder diesel equipped with a particulate filter is a moderate 9.6 liters per 100 km and 12.6 liters per 100 km. this is far better than the fuel consumption of the Touareg V10 TDI.

To maximize the performance potential of the R50, Volkswagen has created new exterior and interior features basing on the R philosophy. Outside, the new Touareg R50 is made distinct by its 21-inch Omanyt type alloy wheels and size 295 tires, blue painted brake calipers, discrete wheel well flares, side skirts and distinctive bumpers (part of the Sport Design Package), and a modified radiator grille offered in a matte finish chrome.

The Biscay Blue car color is exclusively offered on the Touareg R50 which is typical of the high powered R models starting off with the introduction of the Golf R32 in the year 2002. The optional colors offered for the Touareg R50 includes Capanella white, Reflex silver, Black magic, and Atacam gray.

The other extensive features of the R50 include an air suspension sport chassis and the so-called Driving dynamics package with adaptive roll compensation and a twenty millimeter lowered chassis that supplements the Sport mode of the manually or automatically controlled air suspension to achieve a stiffer spring rate.

Inside the R50 SUV is a sport-seating system available in anthracite-colored Nappa leather with R50 logo integrated in the headrests. The logo is also incorporated in the stainless steel tread plates. And still in keeping with the sporty character of the Touareg is the light-colored engine spin décor of the interior which is a metallic structure similar to the ones used on race cars. There are also metal worked caps for the accelerator and brake pedals.

The same R50 logo also adorns the gearshift lever of the six-speed automatic Tiptronic transmission. In terms of standard features the R50 has a winter package that includes seat heating for the rear seats, the Premium Memory Package comprised of electrically adjustable seats, steering column and seatbelt height, net partition behind the rear seats and a ski sack.

 

Volkswagen of America will be having a Dieselution Tour and will be visiting Clarkson University in Potsdam, NY on October 4 to 5, 2007. The main objective of the tour is to educate participants including new shoppers and the media on the various achievements VW has obtained in the field of clean diesel technology and alternative fuels.

As part of the tour is an interactive exhibition that will highlight the current environmental issues as well as the advancement obtained in the diesel engine technology, design, and manufacturing. Starting late September, the Dieselution Tour will embark in a four-month tour and will participate on various events on different locations across the United States where environmental and alternative fuel festivals, auto shows and even the 2008 Super Bowl are held.

Attendees to the Dieselution Tour mobile exhibit will find a horde of exhibits and interactive displays at the 53-foot long, double-expandable semi-trailer. Visitors will be able to see “Alt Fuel/Alt Film” video area, the Dieselab with series of interactive and video displays; a Diesel Heritage section that illustrates the glorious history and international achievements obtained in racing diesel vehicles in events such as the Baja 500, Pikes Peak, and the Dakar Rally.

To featured at the Dieselution Tour are some of Volkswagen’s latest creations such as the 2009 Jetta TDI which is the automaker’s new 50-state clean diesel offering and scheduled to go sale in the US in the spring of 2008. Also part of the display are the 3.0 liter V6 TDI Touareg, a 1977 Rabbit Diesel, and the Polo BlueMotion.

For the Dieselution Tour, Volkswagen has partnered with international companies and CarbonFund.org which is a non-profit offset provider.

The Dieselution Tour will be certified as CarbonFree by Carbonfund.org which is a partner of Volkswagen in offsetting one year of carbon emission from every new Volkswagen sold in the US from September 2007 to January 2, 2008.  Volkswagen together with Carbonfund.org will be engaging in a reforestation project in the Lower Mississippi Alluvial Valley in northern Louisiana which is a wetland ecosystem that had been largely converted to farmland.