European car makers seek 3-yr delay in EU's CO2 emissions cuts

TURIN (Thomson Financial) - The European association of vehicle manufacturers, ACEA, is seeking a three year delay in the introduction of cuts in carbon dioxide emissions proposed by the European Commission, said ACEA president Sergio Marchionne.

Speaking at a model launch by Fiat (nyse: FIA - news - people ), where he is CEO, Marchionne said ACEA is proposing to reach the EU's demand for a cut in car motor emissions to 130 grams of carbon dioxide per kilometre in 2015, rather than 2012 as proposed by the commission.

'The ACEA response to Brussels is that the auto industry is incapable of reaching the target by 2012 and needs until 2015,' he said at the news conference.

Reaching 130 gm/km in 2015 is 'do-able' he said, adding that the ACEA response is 'a blended view' of the auto manufacturers that make up the association's membership.

Fiat is in a stronger position to meet the targets because of it occupies the smaller car end of the market, and because its engines have 'less propensity to issue CO2', he said.

The weighted average CO2 emissions of Fiat cars are Europe's lowest he said, declining to give a figure.

In addition, Fiat's recent setting up of its specialist power train subsidiary for motors and gearboxes is supporting the development of engines that emit less CO2, he said.

On quality, Marchionne said Fiat is working 'plank by plank' on achieving significant improvements in this area, matching Japanese producers, and would like to have already achieved 2010 targets by 2008.

source : www.forbes.com