Toyota needs $1 billion to abide by stricter California regulations
Automakers are in a scramble to fix their budget and comply with stricter emission and fuel mileage
regulations that will be in effect across the nation. The state of California is also setting tougher requirements. Japanese car maker Toyota is also studying a tough goal of 3% of its total 2012 sales that should come from zero emission units.
The company estimates that they will need about $1 billion to follow all the new industry rules from the federal government and California.
California requires manufacturers that sell more than 60000 vehicles in a year to have 3% of the units as zero emissions. This puts automakers like Toyota, Ford, and Honda in a no choice position because of the state legislation.
Chrysler and General Motors will also have to follow the new rules but do not require as much budget considering that the other car makers share the bigger chunk of the market.
The needed $1 billion of funding can be broken down into production of components needed for building the electric vehicles, equipment, and service centers. They also have to consider things like training of the manpower, marketing, and coverage for the vehicle’s guarantees and warranties.
