New EU Rules May Boost Diesel Hybrids, Fuel Cells

Alternative powertrains will look increasingly attractive if the European Commission, as expected, proposes rules on Wednesday to force carmakers to cut new cars’ CO2 emissions by nearly a fifth to an average of 130 grams per kilometre (g/km) by 2012.

The proposals — part of EU efforts to fight climate change — are likely to boost potential demand for diesel hybrid and fuel cell powered cars, which have yet to hit the market and are significantly more expensive than conventional cars.
The cost of meeting the new CO2 standards — such as developing technology to make engines and transmissions more efficient — could add hundreds, if not thousands, of euros to prices of conventionally powered cars, industry experts say.

Diesel hybrids, which reduce fuel consumption by linking a standard diesel engine to an electric motor and batteries so it can run on electricity alone at low speeds, may no longer be priced out of the market.

Planet Ark