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.

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.

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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.

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.

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.

After years of what looked like unstoppable growth, sales of new electric vehicles in China are down 14 percent year on year, dragged lower in part by a slowing local economy and the government pulling some incentives.

Figures released by the China Passenger Car Association show that 4.7 million new EVs have been delivered in China this year. July treated some brands more kindly than June did, though major players like BYD and Geely are still feeling the downturn, as are smaller local firms including Xpeng and Nio.

Read: China’s Electrified Car Sales Sank 13%, And The World Is About To Feel It

In July, BYD sold 239,370 vehicles locally, down 9 percent from the same month in 2025 but up 4.9 percent from June. Geely followed a similar pattern, with July sales up 4 percent on June yet down 29.1 percent against last July, the South China Morning Post reports. What’s helping both automakers cushion the home-market slump is a surge in overseas exports.

Brands like Xpeng, Nio, and Li Auto all have some footprint abroad, but their home nation still accounts for the vast majority of sales. Xpeng’s July deliveries slipped 5.2 percent to 38,027 vehicles versus June, Nio’s fell 11.5 percent to 35,934, and Li Auto’s dipped 1.4 percent to 30,468.

AlixPartners expects that by the end of this year, new car sales in China will have dropped by 10 percent to 24.6 million vehicles. The wider economy isn’t doing EV sellers any favors either. GDP grew just 4.3 percent year on year in the second quarter, China’s slowest pace since late 2022.

Incentive Pain

The government’s decision to trim incentives has had an immediate impact on sales. Earlier this year, any new car purchase came with a 15,000-yuan ($2,220) subsidy. That figure was recently cut by 33 percent, and the subsidy now equals 10 percent of a new vehicle’s purchase price, capped at 10,000 yuan ($1,480). For some of the nation’s most affordable EVs, the payout is now 5,000 yuan ($740) lower than before.

At the Beijing Auto Show earlier this year, Volkswagen unveiled a slew of new models including the ID. Unyx 09. The car was developed with Xpeng, but the company didn’t say much about it other than sales would begin later this year.

With a launch approaching, the 09 has been detailed by the Ministry of Industry and Information Technology. There will be two variants and the base model will have a rear-mounted motor developing 308 hp (230 kW / 313 PS).

More: VW Storms Beijing With Two New ID Models And A Jetta Crossover Concept

Customers will also be able to get an all-wheel drive variant, which adds a 188 hp (140 kW / 190 PS) front motor into the mix. This means we can expect a combined maximum output of 496 hp (370 kW / 503 PS).

Both have a top speed of 124 mph (200 km/h) and a lithium iron phosphate battery sourced from CATL. Since the powertrains appear to be shared with the ID. Unyx 08, it’s possible the 09 could have 82 and 95 kWh options.

Since we’ve already seen the car before, we’ll briefly note it’s a looker with an aggressive design that makes the ID.7 look like it runs on Ambien. The menacing front end features split lighting units and a subtle shark nose design.

The sporty styling continues further back with blacked out A-pillars, muscular bodywork, and a gently sloping roofline. They’re joined by a panoramic glass roof and 20- or 21-inch wheels.

At the rear, there are slender taillights with a red Volkswagen logo in the middle. We can also see a wide trunk and a black bumper with an integrated diffuser.

The ID. Unyx 09 measures 200 inches (5,081 mm) long, 78 inches (1,980 mm) wide, and 59.4-60 inches (1,509-1,526) tall. The model also has a wheelbase that spans 119.3 inches (3,030 mm). Customers can also expect curb weights of 4,866 lbs (2,207 kg) and 5,086 lbs (2,307 kg).

To put those numbers into perspective, the model is 4.7 inches (119 mm) longer than the ID.7 and has an extra 2.5 inches (64 mm) between the wheels.