GERMANY: The European Commission is set to propose looser emissions limits for new cars today in the face of fierce pressure from the auto industry and German ministers to water down its legislative plans.
German chancellor Angela Merkel pledged to fight "with full vigour" the plans to introduce across-the-board limits on carbon dioxide emissions from cars.
The 27-strong commission is expected to vote on proposals to impose a mandatory CO2 emissions limit of 130g/km on all new cars from 2012. Its original plan to set the target at 120g was shelved last week after a furious dispute.
German manufacturers are alarmed that a blanket rule would hit their high-end luxury models like Porsche and the S-Class Mercedes, which emit more CO2 than smaller French and Italian cars.
Dr Merkel said yesterday Berlin would campaign "with all its strength" for the regulations to take in the "diversity" of the auto market, thus avoiding a one-size-fits-all solution.
"I think I can go so far as to say that we will prevent a general reduction. At any rate, I will do whatever I can to prevent this," she told a meeting of German industry chiefs yesterday, to loud applause.
Her outspoken remarks - a long way from her otherwise mild tone since Germany took over the EU presidency this month - are a reflection of the power of the German car industry, which accounts for one in seven jobs in the country.
A study by Süddeutsche Zeitung newspaper yesterday showed that German cars would be hardest hit by proposed limits.
The Porsche Cayenne emits 358g/km of CO2 and the Mercedes S-Class 600 340g/km - well over the proposed limit of 130g/km. The only cars in the study within the proposed limit were the Peugeot 107 and the Toyota Prius.
German car companies sent a letter to Brussels saying the proposal was "technically unfeasible" and would damage the European automobile industry.
DaimlerChrysler has claimed the regulation would cost 65,000 jobs. - (Additional reporting: Guardian service)