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Car makers will be fine if they use new CO2 database

26th August 2008 Print
Car companies could escape multi-million pound fines, thanks to a new CO2 analysis system developed by Spyder Automotive. It reveals the price manufacturers will start paying in 2012, under new European CO2 Regulations, if they bring the wrong model mix to market.

As part of its new rules, the European Commission will fine car makers up to €95 for each gram of CO2 a car emits over new targets. They say new cars should emit an average 130 g/km by 2012 and fines for exceeding this will be levied on every new car sold.

A model emitting the current UK average 160 g/km would face a fine of €2,850 (£2,250). In a market of 2.3 million new cars, that could mean an eye-watering £5bn bill for the industry.

However, using Spyder’s new system, product planners can ensure they keep the bill to a minimum – or even avoid fines altogether. It works out the penalties for selling different model mixes, and also shows which model mix will minimise any financial penalties.

Operators simply input a number of variables, based on models they plan to sell in the years to come. These include:

Individual models and variants by engine size and trim levels
Predicted sales volumes, CO2 figures and weight data for each one

The system then calculates

A target CO2 figure based on vehicle weight and the Commission’s so-called ‘slope of the line’ parameter linking weight to target CO2

The variance from the target figure and any resulting financial penalties

The system has been created by industry experts Spyder Automotive, which also publishes consumer web site cleangreencars.co.uk.

“Choosing the wrong product mix has huge cost implications,” said Jay Nagley, managing director of Spyder Automotive. “Profits from larger models could easily be off-set by punitive fines that will be paid for their emissions. Our new analysis system means planners can get the balance right, focusing attention on the cost burden and helping encourage manufacturers to bring lower emitting cars to market sooner.”