Fiat, Peugeot hit EU fuel, emissions targets

Environmental group also praises BMW's emissions progress

Sep 14, 2009

The Associated Press

BRUSSELS–Fiat SpA and PSA Peugeot-Citroen SA were the only two carmakers to hit a voluntary European Union target to reduce fuel consumption and carbon dioxide emissions by last year, environmental activists said Tuesday.

Transport & Environment praised Germany's BMW AG for making the most progress in reducing CO2 emissions as it rolled out fuel-saving technology across its range of cars.

Overall, the group warned that carmakers are not moving fast enough toward a binding target to clean up their fleet of cars and urged them to accelerate efforts in coming years.

The European car industry must reduce average emissions to 130 grams of carbon dioxide per (.62 mile) by 2015 or individual carmakers will face fines.

That target was set last year after carmakers failed to reach a voluntary goal to hit 140 grams per kilometre by 2008 – one that only Italy's Fiat and France's Peugeot met.

Both carmakers make many small, light cars that burn less fuel.

Daimler AG, the maker of luxury Mercedes models, currently produces the most polluting range of cars in Europe, the activist group said. It must cut emissions by a quarter by 2015, as must Japanese carmakers Nissan Motor Co., Mazda Motor Corp. and Suzuki Motor Corp.

Transport spokesman Jos Dings said BMW – like Daimler, a producer of high-end gas guzzlers – had moved swiftly to "play catch up" after it ranked as one of the most-polluting carmakers two years ago. BMW is now ranked ninth on the list, ahead of Daimler at No. 14.

"They (BMW) have introduced across the board their (fuel-efficient) technologies and that has been very effective,'' he told reporters. "It is really very much a technology question. If you look at the other side, the weight of vehicles hasn't really changed.''

Volkswagen AG, Europe's biggest selling carmaker, should follow BMW in introducing fuel-saving technology across its fleet to avoid being ranked at 12th place, Dings said.

Dings said consumers do not seem to be swayed by climate change issues when choosing cars, despite record-high increases in fuel prices last summer, and aren't yet picking greener cars over heavier, more fuel-guzzling models.

Regulation is the driving factor behind faster emissions cuts last year, he said. By 2020, all carmakers in Europe will have to sell a range of cars that release an average of 95 grams per kilometre.

Car sales fell 7 per cent last year as the economy slowed. Cash-for-clunkers programs in several EU nations have boosted sales this year.

The transport group also said it expected the European Commission to lay out new draft rules on binding targets for vans, trucks and buses in early October. It called for the EU executive to stick to earlier targets of C02 reductions to 175 grams per kilometre by 2012, 160 by 2015 and set a new goal of 125 grams per kilometre for 2020.

Dings said makers of commercial vehicles could easily introduce cleaner technology to reduce emissions. He also called for a speed limit of 100 km/h (62 m.p.h.) for vans to save fuel.

Greenhouse gas emissions from vehicles are soaring. The EU rules aim to encourage carmakers to focus on marketing more smaller, fuel-efficient models that would also lessen Europe's growing reliance on imported oil.

Toronto Star