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 |  Dec 28 2011, 10:00 AM

Car companies that sell their vehicles in Europe have to deal with the toughest emission standards in the world, and they are about to get tougher still.

The European Union has just announced that it wants to improve emissions by 20% in 2015, and to achieve that goal, it is tightening emission regulations starting from 2012.

As of January 1st, all automobile manufacturer’s who produce more than 10,000 vehicles per-year, will need to sell 65% of their annual sales of cars that produce less than 130-grams of Co2/kilometer (0.621-miles).

Automakers who cannot comply with this regulation will pay a fine of $6.50 per-gram for each car that is over. This could add to millions by the end of the year, making survival in the auto industry even tougher than before.

Renault’s Romanian brand Dacia will be in trouble with these new regulations in 2012, and Daimler is expected to be in even more trouble, as it would have to pay a fine of $2500 per vehicle.

Not all car companies will be in trouble however. Toyota, Peugeot and Fiat produce vehicles that produce between 112 to 119 grams/km.

While this regulation favors companies that produce small cars, those who produce large SUV’s will either have to cut production or start offering a small commuter car to bring their average down.

[Source: Left Lane News]