Thursday, June 03, 2004

Europeans' car preferences reduce fuel price shock

A report from Reuters:
"Worried by prospects for a tax on carbon dioxide emissions, European manufacturers are churning out fuel-efficient cars in a bid to boost their fleets' average consumption to around 40 miles per gallon (5.9 litres per 100 km) by 2008 from some 28 now - still a third better than the average for US models, Reuters said.

'The rise in pump prices in some ways even helps them because it does refocus the consumer back on small engines. There has definitely been a trend to higher power outputs recently' in all big markets, John Lawson at Smith Barney told the news agency."

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