
German opposition parties accused Angela Merkel of pandering to the car lobby, after her political party received major donations from the family that controls BMW, just as Berlin was lobbying against tougher EU caps on carbon emissions.

EU governments have delayed for a third time a target to cut average CO2 emissions from Europe’s new-car fleet to 95 grams per kilometer after lobbying from Germany on behalf of its automakers.

European Union state aid regulators approved 20.5 million euros ($27.73 million) in French support for Renault to develop diesel hybrid technology that will cut CO2 emissions from commercial vehicles.

Jaguar Land Rover is talking with other automakers about a partnership on hybrid vehicles as the UK luxury car manufacturer battles to meet CO2 emissions targets in Europe.

Photo credit: Reuters
German Chancellor Angela Merkel, facing elections in less than two weeks, warned the EU against imposing tough environmental targets on German luxury carmakers. Merkel, speaking at the Frankfurt auto show on Thursday, blocked a deal in June that would have set Europe’s car industry an ambitious target to reduce CO2 emissions.