AUDI expects to be one of the first manufacturers in the UK to offer a diesel car that meets Euro IV emission standards in around 18 months. Diesels that meet Euro-IV standards will avoid the three percentage point penalty for other diesel cars, under the new carbon dioxide based company car tax system to be introduced in April 2002.

Volkswagen Group is currently the only manufacturer to offer a diesel that meets Euro IV legislation which becomes law in 2005, but the 1.2-litre TDI engine in the Volkswagen Lupo and Audi A2 is not available in the UK. An Audi spokesman told Fleet NewsNet: 'We are developing the technology and testing vehicles in all conditions. 'We would expect to introduce Euro IV diesels across Europe in 18 months, and are confident we could be among the first to offer it in the UK.' Volkswagen Group maintains that cars up to the weight of a Golf could be adapted to meet Euro IV without any potentially expensive additional equipment to purify the exhaust emissions. It also says it can be done without a negative effect on fuel consumption and CO2 emissions.