According to the Financial Times, the Commission is considering imposing fines that could cost the industry between €4bn and €13bn per year.

The Commission wants to bind the automotive industry to legislation that will see vehicle emissions fall from the current level of 160 g/km to 130 g/km by 2012. While the Commission has yet to formally announce any rules, José Manuel Barroso, EC president, said he wants to present guidelines for the legislation next week. Any initiative would have to be approved by member states and the European Parliament.