While John McCain's idea of a gas tax holiday was a hit in the U.S. (well, it was a hit with him and Hillary Clinton, anyway), the European Commission is saying no in all sorts of languages to the possibility of the EU capping the value-added tax on fuel. Automotive News Europe reports that the EC shot down a proposal by French president Nicolas Sarkozy to cap the tax by saying any such move was the wrong response to high oil prices and would require unanimous agreement anyway. Sarkozy didn't specify how high he thought oil prices should go before the tax cap kicked in, but it doesn't look like he even needs to bother. The EC's stand is that, "changing taxation on fuels in order to combat increasing prices would send the wrong message to producing countries. This would show them that they could increase prices, and citizens would have to pay for this. So that's really the wrong message," Commission energy spokesman Ferran Tarradellas told ANE. Funny, that's not the message we heard when McCain and Clinton were all 'bout the gas tax holiday.

[Source: Automotive News Europe]

The German arguments to European Commission rules aimed at lowering average vehicle CO₂ emissions has been well covered. Because many of the major German brands make large, powerful vehicles, the German administration felt that they were being dealt with unfairly. France, for its part, has automakers which quite nearly complied with the proposed standards just as they were and did not want to see German automakers get any special treatment. Can't we all just get along? Maybe, since Automotive News is reporting that representatives from the two feuding nations have gotten together and are hashing out their differences. We don't have any details on just what changes are being suggested to the proposal, but an anonymous source claims that there are few sticking points left on the table. According to reports, France would like to see a deal made before June 9, when there is a meeting between Frech President Nicolas Sarkozy and German Chancellor Angela Merkel scheduled in Bavaria. Stay tuned.

[Source: Automotive News - sub. req'd]

A few years back, the European Commission began drafting tough new standards to regulate the amount of CO₂ that vehicles sold in member states could emit -- and its been backing off ever since. While French and Italian company's had no problems at all with the proposed regulations of 120 g/km of carbon emissions, the German brands began protesting. Since then, the Commission has moved the proposals down quite a bit in order to appease the masses. One proposal would have the allowable CO₂ emissions based on the size of the vehicle, which would help the Germans, with their large, heavy and powerful vehicles, skirt around the toughest standards.

Naturally, Fiat Group CEO Sergio Marchionne isn't at all happy about these changes, saying, "This type of nonsense is clearly the result of political pressures that have been hard at work to protect particular participants in the European automotive market. Fiat as a group will not tolerate them and will do everything in its power to protect its economic interests in a manner consistent with the Commission's objective in substantially reducing CO₂ emissions." Because of the sliding curve of the latest proposal, makers of small and lightweight vehicles would be held to a higher standard than makers of large vehicles, which somehow seems rather backwards, wouldn't you say?

[Source: Automotive News Europe - sub. req'd]

Toyota Motor Europe President Tadashi Arashima says that the company has plans for eighteen completely new or heavily revised models which will emit less than 140 grams of CO₂ per kilometer by the end of next year. Those sound like very ambitious plans but Toyota, which currently averages 149g/km for its line of vehicles in Europe, could be capable of such heroics. If they indeed make this happen, it would mean that half of all Toyotas sold in Europe would meet that low carbon emission target, up from roughly thirty percent last year. Under newly-proposed European Commission rules, Toyota would need to average roughly 127g/km of CO₂ emissions by 2012, so an aggressive mid-range target such as this one might be a necessity.

No indication of how Toyota plans to implement these new standards was given. Interestingly, Arashima suggests that some cost increases would need to be passed on to the consumer, but the Japanese company would take a wait-and-see approach before making any adjustments of its own. Consumer acceptance towards other brands could set a precedent for Toyota to follow.

[Source: Automotive News Europe - sub. req'd]

As you might know, the EU has plans to make a 10 percent blend of biofuels mandatory in 2020. However, not everybody agrees that it's a good measure. In fact, lots of voices have been raised in warning about using biofuels to reduce our dependence on oil.

While it has looked like Peugeot would be the first company to market a mainstream passenger vehicle with a diesel hybrid powertrain, it now looks like it won't come as quickly as previously thought. PSA (parent company of Peugeot and Citroen) has been developing a diesel hybrid system in cooperation with suppliers Bosch, Continental, Valeo and Thyssen-Krupp. The system was originally supposed to debut in the compact Peugeot 308 in 2010. The cost of developing the system was to have been partially subsidized by the French government. With the European Commission putting the screws to that plan, PSA and its partners will move forward without the handout. As a result, the company has decided that in order to recover those development costs, they need to apply the system on a more expensive model first, which of course means the volumes will be lower. The change in plans also means the new powertrain won't appear until at least 2011. At the current rate, Peugeot may still be first to market, unless Mahindra's plans for a diesel hybrid version of their pickup come to fruition in 2010.

[Source: GreenCarCongress]

It looks like the German automakers may be getting at least some of what they were looking for in the new European CO2 regulations. Car-makers like Porsche, Mercedes, and Audi have been pushing for scaled-back limits on CO2 emissions based on vehicle size, a change that would allow them to continue making big, powerful cars.

The European government is split in two parts. The European Commission is the regulatory arm while the European Union is the legislative body. The Commission is pushing for a 120 g//km fleet average limit by 2012, something that French and Italian companies are content with since they make a lot of smaller, diesel-powered cars. To appease the Germans, the EU wants to make the limit 125 g/km with a 2015 deadline. Apparently the politicians who comprise the EU parliament have decided that at least the German automakers need more time to meet the new requirements. Once the EC and EU do reach agreement on new regulations, it could be another two years before they are implemented.

[Source: Motor Authority]

The allure of hydrogen cars is in their lack of emissions, and this was enough to cause the European Union's executive arm to recently suggest a 470 million euro (665 million dollars) investment into the technology.

EU Industry Commissioner Guenter Verheugen said, "I'm absolutely not sure that the hydrogen powered car is the car of the future. It is a technology that is really promising and it is important that we give that technology the possibility to be developed."

Although manufacturers such as BMW, General Motors, Honda and Mazda all have hydrogen vehicles that are already on the roads, Verheugen recognizes that the cars are not likely to make a large dent in the overall emissions from cars anytime soon. He said, "Whether it will work I do not know. But what I know is that in the next 10 years we will not have hydrogen powered cars on our streets -- not in a quantity that will count in any way for (bringing down) the emissions."

In addition to the hefty sum allotted for research, the EU would also like to set up standard rules for the manufacturers so that it was easier for them to bring hydrogen vehicles to market. Some day, maybe.

[Source: Physorg]