Over the last year or so, Porsche has been grabbing chunks of Volkswagen, slowly but surely. It is clear what the German manufacturer of luxurious sportscars is attempting: a takeover of VW, which is the largest automaker in Germany. There are still laws and regulations standing it its way, but Porsche may have the backing of the European Union, which could have the power to change laws currently protecting Volkswagen from a takeover. It has long been assumed that Porsche’s plan was to lump its products along with the more fuel efficient models from VW, which could allow the company to avoid paying large fines for not meeting carbon output regulations.

As it stands right now, Porsche seemingly has no choice but to offer more fuel efficient and lower emission models. To that end, it has announced hybrid versions of its Cayenne and upcoming Panamera sedan. Also possible is a diesel engine for its utility vehicle. By gobbling up Volkswagen, Porsche could dial back on these fuel-saving models and get back to its high performance ways without fear of excessive penalties.

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In yet another move demonstrating that Porsche is capitulating to the greener crowd, an industry newsletter is reporting that the German automaker’s executives have overcome their long-time reservations about diesel powerplants and are considering such a vehicle for their lineup by 2010.

Reportedly, Porsche is studying a diesel engine for its upscale Cayenne SUV. This would be the second non-gasoline engine for the Cayenne, as the Cayenne Hybrid is expected to turn up in 2010 as well. The diesel would be borrowed from Volkswagen, a company Porsche has significant stake in. The platform-sharing Volkswagen Touareg has offered a diesel in the States since 2006 (you know, it’s the one that pulls 747s).

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