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Canada seen setting new car efficiency standards

OTTAWA
Wed Jan 16, 2008 4:26pm EST

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.

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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)
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