The cost of new cars will be increased by as much as half by new regulations on the way from Brussels, according to calculations presented to the European Commission by a motor industry delegation.
Car makers meeting at the Geneva motor show last week said new rules to reduce polluting emissions from vehicles and to increase safety for pedestrians would add 35-50 per cent to costs.
Just reducing carbon dioxide emissions alone would cost €3,500-€4,000 per car, according to research commissioned by the car firms.
Sir Nick Scheele, chief operating officer of Ford Motor, said there had been more than 250 directives affecting the car industry in the past 20 years and they were often contradictory.
Five senior car industry leaders including the heads of VW, Renault and Sir Nick met EU Commission president Romano Prodi and other European commissioners two weeks ago to demand changes. Mr Prodi promised to raise their ideas with the new Commission taking office later this year.
The car firms want Europe to carry out cost-benefit studies to assess the impact of new regulations before they are seriously considered.
They are increasingly concerned that they are becoming less competitive in export markets because of tighter rules for their home market.
Financial Times