Toyota To Build Eighteen New Models To Meet European Regulations

In the face of European Union regulations that require carbon emissions of no greater than 130 g/km by 2012, Toyota says it will produce 18 new or redesigned models that meet that standard. The company's present goal is to increase the number of models it sells in Europe that can achieve carbon emissions of 140 g/km or less. If successful, that would lower the fleet average CO2 emissions, which is what the EU regulations require. In 2007, 30 percent of Toyota's European vehicles emitted more than 140 g/km of CO2.

When the new regulations kick in, the EU will assess a fine of €20 per g/km of CO2 that exceeds the mandate. Fines will escalate to €95 per g/km by 2016. When combined with other vehicle regulations and safety technology requirements for vehicles sold in the EU, models there are likely to become the most expensive in the world. Toyota has not yet indicated how much of the cost increases it will pass along to consumers, but it is widely expected that Toyota's customer base will end up footing the bill.