5. The European Union plans to increase the fuel-efficiency standards of cars so that emissions are no more than 130 g CO /km, down from 162 g/km in 2005. For every extra gram automobile companies would have to pay a fine up to D95

($124) from 2012 onwards. To which extent would that change the costs of a new

(a) Volkswagen Golf,

(b) Toyota Yaris,

(c) Mercedes and

(d) Porsche? Moreover, discuss how the plans of the European Union would change the rules of competition in the automobile business.