Toyota, PSA and BMW Close to Meeting EU Emissions Targets

Toyota Motor Corp., PSA/Peugeot-Citroen SA and BMW AG are the automakers closest to reaching their EU-mandated CO2 targets, according to data released today by market researchers JATO Dynamics. The three automotive groups need to cut just 7 percent or less to reach the stringent standards set be the EU.

The rules, which start to take effect as early as next year, mean that by 2015 the industry must reduce CO2 emissions from new cars sold in Europe to a fleet average of 130 grams per kilometer.

According to JATO’s study of 21 European markets, last year’s industry average was 140.9 grams per kilometer, down from 2009’s 145.9 grams per kilometer. Daimler AG, Mazda Motor Corp. and Nissan Motor Co. are lagging and will need to speed up the pace of their CO2 cuts to help the industry reach the overall goal.

"I don't think anyone would be put out of business," JATO Vice President for Research Gareth Hession told Automotive News Europe. "But I think you would have to significantly change your retail pricing position if you were to carry on producing high-emitting cars."

The tough new rules being imposed say that from 2012 to 2018, automakers will be fined €5 per vehicle for the first g/km of CO2, €15 for the second gram, €25 for the third gram and €95 from the fourth gram onwards. That means that a carmaker that sells 1 million cars in Europe and misses the target by 1 gram will have to pay €5 million. If the same company misses it by four grams, this will increase to €95 million.