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EU GETS TOUGH WITH CARMAKERS: Carmakers that fail to achieve the EU's tough new emission standards will not be allowed to offset…

EU GETS TOUGH WITH CARMAKERS:Carmakers that fail to achieve the EU's tough new emission standards will not be allowed to offset their shortfall through financial payments, Günter Verheugen, the EU industry commissioner, has said. The Commission told carmakers earlier this year that they would have to reduce carbon dioxide emissions to an average 130 grammes per kilometre across the fleet. Luxury carmakers are unlikely to meet the 130g target, which means producers of smaller cars must somehow make up the difference.

BMW 'CONSIDERING' NEW CAR SMALLER THAN MINI:BMW is considering developing a new car smaller than its Mini model as part of a review of its market position and car portfolio, according to reports. If built, the vehicle would help the German carmaker lower its mostly large-engined fleet's average carbon dioxide emissions as European Union lawmakers push ahead with CO2-cutting laws.The Munich-based carmaker declined to comment on its plans.

KIA MOVES INTO SPORTIER SECTOR:Kia is preparing the ground for a move into the sports coupé market with the introduction of a concept version at next month's Frankfurt motor show.

Despite a plethora of concept models making their way to Frankfurt, Kia's chief designer Peter Schreyer says this concept "is not a flight of fancy" and "incorporates a host of elements that will become the new face of Kia right across our product range and it is the clearest design statement about the way I want Kia to be seen as we go forwards."

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NEW IMPREZA TO BE UNVEILED IN FRANKFURT:Subaru is all set to unveil its new Impreza range at next month's Frankfurt motor show. The new car is set to arrive in Irish dealers in October with 1.5-litre and 2-litre petrol versions. A high performance STi version has now been confirmed for arrival in Ireland next spring. A concept version of the latter will be unveiled at the show. Subaru will also unveil a new diesel engine - the world's first horizontally opposed "boxer" diesel. It will feature in Legacy and Outback models on sale here next April.