European carmakers may not be universally happy about the proposed new European Union CO2 limits with some like Porsche threating to leave the EU market while others are moving forward. Analyst Jato Dynamics says that the 130g/km limit is driving the European carmakers to change the way they design cars and do business. The Jato analysis says that the auto industry has had to take on a disproportionate share of the burden of reducing CO2 and they've made a lot of progress already.

It's unlikely that all carmakers will be able to meet the limits. While last years fleet average was still above the previous voluntary targets set by the EU, emissions have fallen steadily every year since 2001. Carmakers have invested a lot of money in new technology like hybrids in the last few years, but they haven't really caught on Europe with the Prius only getting a 0.18% share of the market. On the other hand increasingly punitive taxes on vehicles that consume more fuel is likely to push consumers toward ever more efficient vehicles. Although few vehicles currently meet the new standards, Jato says carmakers are making progress and are committed to change.

[Source: Just-Auto - Sub. req'd]

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