Porsche leaves VW emissions pool to partner with China's Xpeng

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The VW Group missed its European fleet emissions target last year.

Porsche will pool emissions with Xpeng to help avoid a repeat in 2026-2027.

Carmakers face a €95 fine per vehicle for every gram of CO2 over the limit.

Rather than combining its European emissions with the Volkswagen Group across 2026-2027, Porsche will pool its figures with Chinese automaker Xpeng, according to a new report citing analyst Matthias Schmidt. The move puts the VW Group in a stronger position to hit its targets and steer clear of expensive fines, since carving Porsche out of the group average pulls that number in the right direction.

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In 2025, the VW Group’s average European emissions, Porsche included, landed at 100 g/km, above the EU’s mandate of 93.6 g/km. Miss those targets and the conglomerate could be on the hook for as much as €1.5 billion ($1.7 billion) in fines across 2025-2027. As it stands, the penalty runs €95 ($109) per gram of CO2 over the limit, per vehicle.

Read: Xpeng CEO Eyes US Launch, Suggests Company Could Build Plants In America

Porsche would likely weigh on the broader VW Group because its local EV sales have slipped, driven mostly by softening demand for the Taycan and the all-electric Macan . The brand has also pivoted back toward combustion-powered models.

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There’s no word on how much Porsche is paying Xpeng to pool their emissions, but the company has clearly decided the cost beats pushing the VW Group over the limit and eating a fine. According to Auto News , Xpeng sold roughly 19,000 EVs across Europe in the first six months of this year, up 126 percent.

Xpeng GX

The Porsche and Xpeng pool remains open so other car manufacturers can choose to enter it should they wish. Pools can be joined until December 31. Two other important pools include a Tesla one, which includes Ford, Honda, Mazda, and Suzuki, as well as a Mercedes-Benz pool with Volvo, Polestar, and Smart.

It might look odd for Porsche to team up with Xpeng, but the VW Group already has a tight relationship with the automaker in China, where the two are developing a shared architecture and several new models together.

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