Porsche 2012 Annual Report Download - page 138

to date indicate that the energy costs incurred by
the Volkswagen group’s European sites will increase
as a result of purchasing the emission allowances
required for the operation of proprietary power
plants and heating facilities. The amount of the
additional costs will depend essentially on the price
at which the certificates are traded.
The European Commission is currently giving
detailed consideration to intervening in EU emis-
sions trading in order to boost it. The Commission
is currently in favor of withdrawing a defined
number of freely allocated certificates at the be-
ginning of the third trading period and not allocat-
ing them until the end of the trading period. This
artificial shortage of certificates at the beginning
of the trading period may cause certificate prices
to rise.
The future political direction of global climate
protection agreements remains unclear. There is
currently no sound long-term prospect of specific
reduction targets, responsibilities and funding
arrangements or more stringent climate protection
requirements based on them. At the UN, a new
climate protection agreement for 2020 onwards is
to be negotiated by 2015 at the latest.
Litigation
In the course of their operating activities, Volkswagen
AG and the companies in which it is directly or indi-
rectly invested become involved in legal disputes and
official proceedings in Germany and internationally. In
particular, such proceedings may occur in relation to
suppliers, dealers, customers, employees, or inves-
tors. For the companies involved, these may result in
payment or other obligations. Particularly in cases
where US customers assert claims for vehicle defects
individually or by way of a class action, highly cost-
intensive measures may have to be taken and sub-
stantial compensation or punitive damages paid.
Corresponding risks also result from US patent in-
fringement proceedings.
Where transparent and economically viable, ad-
equate insurance cover is taken out for these risks
and appropriate provisions recognized for the re-
maining identifiable risks. The company does not
believe, therefore, that these risks will have a sus-
tained effect on the economic position of the
Volkswagen group. However, as some risks cannot
be assessed or can only be assessed to a limited
extent, the possibility of loss or damage not being
covered by the insured amounts and provisions
cannot be ruled out.
2The company
Group management report
2134