Toyota Motor Corp., ranked as the U.S. market's most fuel-efficient automaker, may have to spend more than $1 billion to meet California's requirement for zero-emission cars.
Toyota and Honda Motor Co. have the biggest market share in the state and therefore starting with 2012 models must also sell the most vehicles that don't pollute, according to California law. The rule requires that 3 percent of unit sales over a three-year period must be nonpolluting models.
California's requirement for plug-ins and zero-pollution models applies only to companies that sell at least 60,000 vehicles a year in the state. General Motors Corp. and Chrysler LLC's bankruptcies may cut into their sales in California, thereby reducing the costs of compliance.
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