Porsche 2011 Annual Report Download - page 114

If product defects are extant after the start
of production despite these risk avoidance measures,
these defects are recorded and assessed in the
sales markets. The aim is to determine and remedy
the cause. To this end, Porsche AG has set up an
interdisciplinary working group that introduces reme-
dial measures to the production process either at
Porsche or the supplier. Provisions are recognized to
provide for the risk from warranty claims and recalls.
Coverage for product liability claims is provided by
the company’s business liability insurance.
Environmental protection regulations
In the last few years, numerous environmental
protection regulations were introduced in Germany
and at an international level regarding fuel consump-
tion and greenhouse gas emissions. Goals to dra-
matically reduce greenhouse gas emissions by 2030
and almost completely avoid the use of fossil fuels by
2050 are already the subject of public and political
debate. It can be expected that regulations will be-
come tighter across the globe in future. The group is
affected by this development, both in terms of its
manufacturing facilities and in terms of its products,
particularly with regard to energy efficiency and rising
prices for energy in general. The group is countering
the possible consequences by managing its resources
and energy as part of its environmental management
system as well as devoting special working commit-
tees to energy management.
In the regulation of 23 April 2009 on CO2
emission performance standards, the EU Commission
set an upper limit of 130 g/km for the mean emis-
sions of the entire European fleet of new vehicles
from 2012. A further ten grams should be attained by
supplementary measures, such as the use of bio-fuels,
low-friction tires, effective air conditioners and other
technical improvements.
The regulation sets European manufacturers
the target of average emissions of 95 g/km from
2020, to be achieved through phased reductions. As
of 2012, the Commission will impose an annual ex-
cess emissions premium on any manufacturer that
exceeds its emission target. The regulation has a
major impact on the variety of products, the distribu-
tion among the segments and the earnings on the
European market.
Companies like Porsche and its subsidiaries,
which have a very special product portfolio and small
production runs, have the possibility of applying for a
special ruling so as to avoid losing their economic
foundation. Alternatively, they can form an emissions
pool together with other manufacturers and be con-
sidered as one manufacturer with regard to the regu-
lation. Emission and CO2 levels are also being re-
duced in the USA. As a small series manufacturer,
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