Automakers hopeful for new CO2 limit deadline

By Gilles Castonguay

GENEVA (Reuters) - Car makers are becoming more optimistic that European authorities will grant them more time to meet proposed limits on carbon dioxide (CO2) emissions from their vehicles -- a major point of contention between them.

As part of an effort to cut emissions linked to global warming, the European Commission has drafted tough legislation to reduce CO2 emissions from cars, with steep fines on manufacturers that fail to comply.

The executive body of the European Union wants cars to meet an average limit of 120 grams per km of CO2 by 2012. It wants engine technology to achieve a cut to 130 g/km, with improvements in tires, gears, air conditioning to do the rest.

Automakers want more time -- at least three years -- saying the extra cost of meeting the deadline would hurt the industry.

EU ministers and the European Parliament are debating the proposal, and car makers have become more optimistic about their demand being met, according to the International Automobile Manufacturers Association, OICA.

Xavier Fels, the worldwide body's vice-chairman, said the parliamentary committees reviewing the proposal had given signs that they were open to industry's demands.

That impression was reinforced when EU environment ministers met in Brussels on Monday, Fels said.

"We are hopeful," he told reporters at the Geneva autoshow.