Canada seen setting new car efficiency standards

OTTAWA (Reuters) - Canadian Transport Minister Lawrence Cannon is planning an environmental announcement at an international auto show on Thursday, with one industry observer saying it was to announce new car efficiency standards.

Cannon's office announced on Wednesday that he would announce "a major environmental initiative" at the Montreal International Auto Show at 10:30 a.m. on Thursday.

An environmental lobbyist said he was told the government would announce car efficiency regulations in line with a U.S. law passed in December requiring automakers to increase fuel economy by 40 percent by 2020.

General Motors said this week the new regulations would add $6,000 to the price of its vehicles in the United States.

(Reporting by Randall Palmer; editing by Rob Wilson)